Question

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.

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.

Step-by-step 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.