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smith cpa has been asked to issue a review report on the balance sheet of cone compa 620504

Smith, CPA, has been asked to issue a review report on the balance sheet of Cone Company, a nonissuer, and not on the other related financial statements. Smith may do so only if

a. Smith compiles and reports on the related statements of income, retained earnings, and cash flows.

b. Smith is not aware of any material modifications needed for the balance sheet to conform with GAAP.

c. The scope of Smith’s inquiry and analytical procedures is not restricted.

d. Cone is a new client and Smith accepts the engagement after the end of Cone’s fiscal year.

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