Which of the following is not typically performed when the auditors perform a review of financial statements?
A. Analytical procedures applied to financial and nonfinancial data.
B. Inquiries about significant subsequent events.
C. Confirmation of accounts receivable.
D. Obtaining an understanding of accounting principles followed in the client’s industry.
Answer:C
This answer is correct because a review consists primarily of analytical procedures, inquires of management and obtaining written representations from management, and not of performing substantive tests of balances such as the confirmation of accounts receivable (函證應收賬款).