Confused about question

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  • #191577
    Anonymous
    Inactive

    Which of the following procedures is more likely to be performed in a review engagement of a nonpublic entity than in a compilation engagement?

    A. Gaining an understanding of the entity’s business transactions.

    B. Making a preliminary assessment of control risk.

    C. Obtaining a representation letter from the chief executive officer.

    D. Assisting the entity in adjusting the accounting records.

    C. In a review engagement, the accountant performs a limited set of procedures consisting of inquiries of management and analytical review. The accountant is also required to obtain a representation letter from management.


    Don’t you also need a representation letter for a compliation?

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  • #642947
    sabrinabelle
    Member

    No, you do not. Representation letters are not required for compilations. I didn't realize that either, back when I took (and failed) AUD in November, but I just retook it and learned this when I re-studied.

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