Which of the following statements is correct?
AIn a review engagement, evidence is gathered mainly by means of computation and inspection.
BWhen a company negotiates a ‘friendly’ takeover, it usually appoints a firm of accountants to carry out due diligence on the takeover target.
CIn an engagement to review financial statements, the amount of work required is the same as for an audit
DIn an attestation engagement, the accountant is required to report on the quality of work performed.
Correct answer
B. When a company negotiates a ‘friendly’ takeover, it usually appoints a firm of accountants to carry out due diligence on the takeover target.
Explanation
When a company negotiates a ‘friendly’ takeover, it usually appoints a firm of accountants to carry out due diligence on the takeover target. is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.