In a review engagement, management is primarily responsible for presenting the financial statements in conformity with generally accepted accounting principles. The CPA provides limited assurance that the financial statements are fairly presented in accordance with generally accepted accounting principles. The CPA obtains knowledge of the accounting principles and practices of the industry and an increased understanding of the client’s business. The accountant does not have to obtain an understanding of the client’s internal control structure or assess control risk. Inquiries and analytical procedures are required and additional procedures to clarify financial information. All generally accepted accounting principles disclosures are required or omissions must be disclosed in a modified review report.
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