Which of the Following Statements Is False Regarding Compilation Procedures

question 36

Multiple Choice

Which of the following statements is false regarding compilation procedures?

• A) The practitioner should have a general knowledge of the organization's industry, the nature of its accounting records, the accounting basis to be used (GAAP or a special purpose framework other than GAAP), and the form and content of the financial statements.
• B) The practitioner is required to make inquiries or perform procedures to verify, corroborate, or review information provided by the client.
• C) The practitioner is not required to obtain an understanding of internal control over financial reporting.
• D) The practitioner should read the financial statements, including footnotes, to make sure that they are appropriate in form and free from obvious material misstatement.

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Definitions:

Shared Output

A result or product of work that is produced by two or more parties working together.

Collective Bargaining

A process where workers, through their unions, negotiate contracts with their employers to determine their terms of employment, including pay, benefits, hours, leave, job health and safety policies, and more.

Verification

The process of establishing the truth, accuracy, or validity of something.

Prioritization

The process of arranging or dealing with tasks, issues, or objectives according to their importance or urgency.