accountant believes are responsible for and knowledgeable about the matters covered in the
representation letter.
D. Written representations need not include information concerning subsequent events.

Answer(s): A
Explanation:
Choice "a" is correct. Written representations from the current management are required for all
periods being reported on. Choice "b" is incorrect. Written representations from the current
management are required for all periods being reported on, even if the current management
was not present during al such periods. Choice "c" is incorrect. Written representations should
be addressed to the accountant. The letter should be signed by members of management
whom the accountant believes are responsible for and knowledgeable about the matters
covered in the representation letter. Choice "d" is incorrect. Written representations should
include information concerning subsequent events.
QUESTION: 198
In reviewing the financial statements of a nonissuer, an accountant is required to modify the
standard review report for which of the following matters?
A. Option A
B. Option B
C. Option C
D. Option D

Answer(s): D
Explanation:
Choice "d" is correct. Modifications are made to the standard review report only when there is a
departure from generally accepted accounting principles. Neither an inability to assess risk nor a
discovery of internal control deficiencies constitutes a departure from GAAP, and therefore
neither would result in a modified review report. Note that assessing the risk of material
misstatement due to fraud is a requirement of an audit, not a review. Also, note that testing of
internal control is not required in a review of financial statements of a nonissuer. Choices "a",
"b", and "c" are incorrect, based on the above Explanation.
QUESTION: 199
An accountant has compiled the financial statements of a nonissuer but declines to issue a
compilation report. This is an example of:

A. An inappropriate reporting decision, because SSARS require that a report be issued
whenever an accountant is associated with financial statements.
B. An inappropriate reporting decision, if the accountant is not independent with respect to the

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