Evaluation Of Financial Statements : A Review Form Of Association Available For Webstar 's Financial Statement

929 WordsDec 1, 20154 Pages
a. Review of financial statements: (1) Is the review form of association available for Webstar 's financial statements? Yes, the review form of association is available for Webstar’s financial statements. The review will be completed in accordance with SSARS. (2) What procedures are typically included in a review? Analytical procedures are performed to assess whether there is any material modifications that need to be made to the financial statements. The accountant must obtain knowledge of the industry and entity in order to better understand the financials. The focus of the procedures and review should be in the areas where there are increased risks of material misstatements. The auditor should compare the financial statements to prior periods and inquire about any significant changes and/or discrepancies. Financial statements are reviewed to ensure they are prepared in accordance with GAAP, and that proper accounting principles and procedures are applied. (3) What type of assurance is included in a review report? Only inquiries and analytical procedures are performed with a review, therefore there is limited assurance. (4) What will result in modification of a review report? A known material departure from GAAP will result in modification of a review report. If the financial statements are not revised, the accountant should consider whether modification of the standard report is adequate to disclose the departure. (5) Williams says that he heard something about there

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