M4 Review Engagements

Question 1

What must be stated on each page of a review engagement’s statements

Answer 1

“See independent accountant’s review report”

Question 2

Who should sign the client representation report?

Answer 2

Signed by CEO and CFO

Question 3

Does a review provide assurance?

Answer 3

Yes, limited assurance therefore the accountant must be independent. (disclosing reason for lack of independence is optional)

Question 4

What procedures are conducted in an Review engagement

Answer 4

Inquiry and analytical procedures

Question 5

Is the accountant required to obtain an understanding of internal control or assess control risk?

Answer 5

No

Question 6

U LIAR CPA

Answer 6

Understanding
Learn
Inquiry
Analytical procedure
Review
Client Representation letter
Professional judgement
Accountant should communicate results

Question 7

What is the primary reason an CPA would withdraw from a review engagement?

Answer 7

The entity declines to provide the accountant with a signed representation letter.

Question 8

If requested to perform a review engagement for a nonissuer in which an accountant has an immaterial direct financial interest, the accountant is:

Answer 8

Not independent and, therefore, may not issue a review report.