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Module A Homework i Saved 4 Module A Exercise 69 LO A-4 3.33 points The following numbered items 110 state procedures accountants should consider performing in review engagements and compilation engagements on the annual financial statements of non-issuers. Required: For each item (taken separately), tell whether the item is required in all review engagements and/or required in all compilation engagements. For each item, give two responses, one regarding review engagements and the other regarding compilation engagements eBook Print Required for a review? Required for a compilation? 1 References 2. 3. 4. 5. The accountants should establish an understanding in writing with the entity's management regarding the nature and limitations of the services to be performed. The accountants should make inquiries concerning actions taken at the board of directors' meetings. The accountants, as the entity's successor accountants, should communicate with the predecessor accountants to obtain access to the predecessors' documentation. The accountants should obtain a level of knowledge of the accounting principles and practices of the entity's industry The accountants should obtain an understanding of the entity's internal control over financial reporting. The accountants should perform analytical procedures designed to identify unusual relationships. The accountants should assess the risk of material misstatement. The accountants should obtain a letter from the entity's attorney to corroborate the information furnished by management concerning litigation. The accountants should obtain written representations from the entity's management The accountants should study the relationship of the financial statement elements that would be expected to conform to a predictable pattern. 6. 8. 9 10