AICPA CPA Auditing and Attestation

Which of the following procedures should an accountant perform during an engagement to review the financial statements of a nonissuer?

An accountant who had begun an audit of the financial statements of a nonissuer was asked to change the engagement to a review because of a restriction on the scope of the audit. If there is reasonable justification for the change, the accountant's review report should include reference to the:

A. Withdraw from the engagement and provide no further services concerning these financial statements.
B. Inform management that the engagement can proceed only if the accountant's report is restricted to internal use.
C. Determine the effects of the departures from GAAP and issue a special report on the financial statements.
D. Issue a modified review report provided the entity agrees that the financial statements will not be used to obtain credit.
 

Which of the following statements should be included in an accountant's standard report based on the compilation of a nonissuer's financial statements?

Miller, CPA, is engaged to compile the financial statements of Web Co., a nonissuer, in conformity with the income tax basis of accounting. If Web's financial statements do not disclose the basis of accounting used, Miller should:

When an accountant is engaged to compile a nonissuer's financial statements that omit substantially all disclosures required by GAAP, the accountant should indicate in the compilation report that the financial statements are:

North Co., a privately-held entity, asked its tax accountant, King, a CPA in public practice, to prepare North's interim financial statements on King's microcomputer when King prepared North's quarterly tax return. King should not submit these financial statements to North unless, as a minimum, King complies with the provisions of:

Smith, CPA, has been asked to issue a review report on the balance sheet of Cone Company, a nonissuer, and not on the other related financial statements. Smith may do so only if:

May an accountant accept an engagement to compile or review the financial statements of a not-for-profit entity if the accountant is unfamiliar with the specialized industry accounting principles, but plans to obtain the required level of knowledge before compiling or reviewing the financial statements?

An accountant should perform analytical procedures during an engagement to:

I. Clearly indicated in the accountant's report.
II. Not undertaken with the intention of misleading the financial statement users.

Which of the following procedures most likely would not be included in a review engagement of a nonissuer?