Which of the Following Procedures Is Usually the First Step

Multiple Choice

Which of the following procedures is usually the first step in reviewing the financial statements of a nonissuer?

A) Make preliminary judgments about risk and materiality to determine the scope and nature of the procedures to be performed.
B) Obtain a general understanding of the entity's organization, its operating characteristics, and its products or services.
C) Assess the risk of material misstatement arising from fraudulent financial reporting and the misappropriation of assets.
D) Perform a preliminary assessment of the operating efficiency of the entity's internal control activities.