Choice "C" is correct. Observing safeguards over access to and use of assets and records is part of the study and evaluation of the client's internal control; such an evaluation is not conducted in a review.
Choice "b" is incorrect. As part of a review engagement, the accountant performs analytical procedures to identify relationships and items that appear to be unusual. Analytical procedures consist of comparisons of the financial statements with statements for a comparable prior period, comparisons of the financial statements with anticipated results (budgets and forecasts), and a study of the relationships of the elements of the financial statements that would be expected to conform to a predictable pattern.
Choice "a" is incorrect. As part of a review engagement, the accountant inquires of management about actions taken at the board of directors' meetings.
Choice "d" is incorrect. As part of a review engagement, the accountant performs analytical procedures to identify relationships and items that appear to be unusual. Analytical procedures consist of comparisons of the financial statements with statements for a comparable prior period, comparisons of the financial statements with anticipated results (budgets and forecasts), and a study of the relationships of the elements of the financial statements that would be expected to conform to a predictable pattern.