Problem
Loman, CPA, who has audited the financial statements of the Broadwall Corporation, a publicly held company, for the year ended December 31, 20X6, was asked to perform a review of the financial statements of Broadwall Corporation for the period ending March 31, 20X7. The engagement letter stated that a review does not provide a basis for the expression of an opinion.
1) Explain why Loman's review will not provide a basis for the expression of an opinion.
2) What are the review procedures Loman should perform, and what is the purpose of each procedure? Structure your response as follows:
Procedure: Purpose of Procedure: