Which of the following procedures would an accountant be most likely to perform

Question

Which of the following procedures would an accountant be most likely to perform during an engagement to review the financial statements of a nonissuer (nonpublic entity)?

A. Compare the financial statement actual expenses to budgeted expenses.

B. Analyze all contracts with a potentially material effect on the financial records, such as purchase contracts for large capital expenditures.

C. Obtain an understanding of the client’s segregation of duties regarding the recording and reconciling of financial information.

D. Obtain written representation from management indicating its evaluation of the effectiveness of the entity’s internal controls.

Explanation / Answer

According to this , answer will be B. As in case of non issuer, the reviewer is more concerned about Income and Expenses entered by the entity,

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