Financial statements of a nonissuer that have been reviewed by an accountant should be accompanied by a report stating that a review:
a. Includes examining, on a test basis, information that is the representation of management.
b. Does not contemplate obtaining corroborating evidential matter or applying certain other procedures ordinarily performed during an audit.
c. Is substantially less in scope than an audit.
d. Provides only limited assurance that the financial statements are fairly presented.
Answer:C
Choice "c" is correct. Financial statements reviewed by an accountant should be accompanied by a report stating that a review is substantially less in scope than an audit.
Choice "d" is incorrect. While a review does provide only limited (negative) assurance, this statement is not explicitly stated in the accountant's review report. The terms "fairly presented" are used in an audit report, not a review report.
Choice "a" is incorrect. Examination of client information is part of an audit engagement, not a review engagement.
Choice "b" is incorrect. While this statement is true, it is not explicitly stated in the accountant's review report.