Which of the following is a required procedure in a review engagement of a nonissuer under SSARS?

Answer options:

Testing internal controls.

Confirming accounts receivable.

Obtaining a management representation letter.

Observing inventory counts.

How to approach this question

Review = Inquiry + Analytics + Rep Letter. No testing of controls, no confirmations, no observation.

Full Answer

C.Obtaining a management representation letter.✓ Correct

Obtaining a management representation letter.

AR-C 90 requires the accountant to perform analytical procedures and inquiries. Additionally, the accountant must obtain a written representation letter from management. Tests of details (confirmations, observation) and tests of controls are not performed.

Common mistakes

Confusing Review procedures with Audit procedures.

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