Question

Which of the following is required of an accountant in reviewing a company's financial statements under Statements on Standards for Accounting and Review Services (SSARS)? Group of answer choices a) Obtain knowledge of the client's industry. b) Send bank confirmations. c) Confirm accounts receivable. d) Observe client's physical inventory.

Answer 1

Answer:

The correct answer is letter "A": Obtain knowledge of the client's industry.

Explanation:

The Standards for Accounting and Review Services (SSARS) was created by the American Institute of Certified Public Accountants (AICPA) to explain and modify existing Review, Compilation, and Financial Statements Commitments Standards. Among the sections of the book, one of the requirements of the accountants is to have a clear understanding of the industry of the company that is being reviewed.