Which of the following procedures is an accountant required to perform when reviewing the financial statements of a nonissuer in accordance with Statements on Standards for Accounting and Review Services (SSARSs) ?

A) Confirm account balance.

B) Perform a physical inventory observation.

C) Obtain a management representation letter.

D) Assess control risk.

Question

Business

Carley Fitzpatrick

19 November, 02:24

Which of the following procedures is an accountant required to perform when reviewing the financial statements of a nonissuer in accordance with Statements on Standards for Accounting and Review Services (SSARSs) ?

A) Confirm account balance.

B) Perform a physical inventory observation.

C) Obtain a management representation letter.

D) Assess control risk.

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Answers (1)

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Amelie Luna · Answer 1

The procedure which would be performed by the accountant while reviewing the financial statements of a non issuer is C) obtaining a management representation letter.

Explanation:

When an accountant is performing the review of financial statements of a non issuer, then it is mandatory for the accountant to comply with the provision of SSARS (Statement for accounting and review services). So while performing the review, accountant can make inquires about what actions were taken at the board of directors meeting and accountant can make this inquire by asking for a representation letter from management.