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Your firm, Apple Bee and King LLP, has performed at the request of the bank a review engagement for one its clients since 2014. Prior to that time an annual audit was always undertaken by the external auditor. This is the first time you have been assigned to a review engagement and you are excited about actually putting into practice what you have learned in your External Auditing course. You are the in charge auditor working with a brand new assistant, Stephanie. You and Stephanie have just finished the initial planning meeting with the client and are discussing the changes that occurred during the its year-end March 31 2020. At the start of the meeting Stephanie admits she did not know much about review engagements since her Introductory Audit Course did not cover the topic and she wonders if you can help her understand a few matters.
Required:
Problem a) In the textbox below identify 3 reasons why a review engagement rather than an audit could work for a client of Apple Bee and King?
Problem b) Identify two differences between an audit and a review engagement.
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