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Which of the following controls is most likely to prevent the improper disposition of equipment?  

Which of the following factors would most likely be considered an inherent limitation to an entity's internal control? 

"There have been no communications from regulatory agencies concerning noncompliance with, or deficiencies in, financial reporting practices that could have a material effect on the financial statements." The foregoing passage is most likely from a:

When an auditor is to conduct an audit of a service organization, what considerations should the auditor make in the planning stages regarding internal controls of the organization?

This question consists of an item pertaining to possible deficiencies in an accountant's review report.

Jordan & Stone, CPAs, audited the financial statements of Tech Co., a nonissuer, for the year ended

December 31, 20X1, and expressed an unqualified opinion. For the year ended December 31, 20X2,

Tech issued comparative financial statements. Jordan & Stone reviewed Tech's 20X2 financial

statements and Kent, an assistant on the engagement, drafted the accountants' review report below.

Land, the engagement supervisor, decided not to reissue the prior year's auditors' report, but instructed

Kent to include a separate paragraph in the current year's review report describing the responsibility

assumed for the prior year's audited financial statements. This is an appropriate reporting procedure.

Land reviewed Kent's draft and indicated in the Supervisor's Review Notes below that there were several

deficiencies in Kent's draft.

Accountant's Review Report

We have reviewed and audited the accompanying balance sheets of Tech Co. as of December 31, 20X2

and 20X1, and the related statements of income, retained earnings, and cash flows for the years then

ended, in accordance with Statements on Standards for Accounting and Review Services issued by the

American Institute of Certified Public Accountants and generally accepted auditing standards. All

information included in these financial statements is the representation of the management of Tech Co.

A review consists principally of inquiries of company personnel and analytical procedures applied to

financial dat

A. It is substantially less in scope than an audit in accordance with generally accepted

auditing standards, the objective of which is the expression of an opinion regarding the financial

statements taken as a whole.

Based on our review, we are not aware of any material modifications that should be made to the

accompanying financial statements. Because of the inherent limitations of a review engagement, this

report is intended for the information of management and should not be used for any other purpose.

The financial statements for the year ended December 31, 20X1, were audited by us and our report was

dated March 2, 20X2. We have no responsibility for updating that report for events and circumstances

occurring after that date.

Jordan and Stone, CPAs

Nlarch 1, 20X3

Supervisor's Review Notes

There should be no reference to "updating the prior year's auditor's report for events and circumstances

occurring after that date" in the fourth (separate) paragraph.