The following items represent a series of unrelated procedures that an accountant may consider performing in an engagement to review or compile the financial statements of a. non-public entity. Procedures may apply to only one, both, or neither type of engagement.
1. The accountant should establish an understanding with the entity regarding the nature and limitations of the services to be performed.
2. The accountant should make inquiries concerning actions taken at the board of directors’ meetings.
3. The accountant should obtain a level of knowledge of the accounting principles and practices of the entity’s industry.
4. The accountant should obtain an understanding of the entity’s internal control.
5. The accountant should perform analytical procedures designed to identify relationships that appear to be unusual.
6. The accountant should send a letter of inquiry to the entity’s lawyer to corroborate the information furnished by management concerning litigation.
7. The accountant should obtain a management representation letter from the entity.
8. The accountant should make inquiries about events subsequent to the date of the financial statements that would have a material effect on the financial statements.
9. The accountant should perform a physical examination of inventory.

REQUIRED
a. Indicate which procedures are required to be performed on a review engagement.
b. Indicate which procedures are required to be performed on a compilation engagement.