[Anonymous]

NINJA Question –

The answer is B, which indicates that a legal representation letter is NOT among the documentation of inquiry and analytical procedures. But then this document is actually included in the list of documents in the answer explanation. Is this question wrong?

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The documentation of the inquiry and analytical procedures on a review engagement should include all of the following except:

A. additional procedures performed in response to significant unexpected differences arising from the analytical procedure and the results of such additional procedures.

B. legal representation letter.

C. communications regarding fraud or noncompliance with laws and regulations.

D. management representation letter.

Communication with the entity’s legal counsel is not a required procedure in a review engagement.

The accountant’s documentation in a review engagement should include the following:

The engagement letter

The analytical procedures performed

The expectations when the expectations are not otherwise readily determinable from the documentation of the work performed, and factors considered in the development of those expectations

Results of the comparison of the expectations to the recorded amounts or ratios developed from recorded amounts

Management’s responses to the accountant’s inquiries regarding fluctuations or relationships that are inconsistent with other relevant information or that differ from expected values by a significant amount

Any additional procedures performed in response to significant unexpected differences arising from the analytical procedure and the results of such additional procedures

The significant matters covered in the accountant’s inquiry procedures and the responses thereto

Any findings that are significant

Unusual matters that the accountant considered during the performance of the review procedures, including their disposition

Communications, whether oral or written, to the appropriate level of management regarding fraud or noncompliance with laws and regulations that come to the accountant’s attention

*****The representation letter*****<

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this included in the answer explanation.

[mtwst113]

I think “The representation letter” is referring to Management's Representation letter, not the legal rep letter?

BEC | √
AUD| √
FAR| Spring 2015

[mtwst113]

I think “The representation letter” is referring to Management's Representation letter, not the legal rep letter?

BEC | √
AUD| √
FAR| Spring 2015

[Tallcpa]

In a review engagement you are not going to contact 3rd parties for confirmations. The answer is correct because it is a review engagement.

BEC 5/27/14 PASSED
FAR 8/13/14 PASSED
REG 10/11/14 PASSED
AUD 11/28/14 PASSED

[Tallcpa]

In a review engagement you are not going to contact 3rd parties for confirmations. The answer is correct because it is a review engagement.

BEC 5/27/14 PASSED
FAR 8/13/14 PASSED
REG 10/11/14 PASSED
AUD 11/28/14 PASSED

[mtwst113]

Tallcpa is correct. Just try to remember that compilations provide no assurance, and reviews provide limited assurance, so the procedures are less extensive than what an audit requires to reach reasonable assurance.

BEC | √
AUD| √
FAR| Spring 2015

[mtwst113]

Tallcpa is correct. Just try to remember that compilations provide no assurance, and reviews provide limited assurance, so the procedures are less extensive than what an audit requires to reach reasonable assurance.

BEC | √
AUD| √
FAR| Spring 2015

[Author]

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