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:

Calvin Cycle

A biochemical process in plants, algae, and cyanobacteria which converts carbon dioxide and water into organic compounds, especially sugars, using ATP and NADPH produced in photosynthesis.

Glucose

An elementary sugar that is critical for energy production in living things and is included in a wide range of carbohydrates.

Fructose

A simple sugar (monosaccharide) that is naturally found in fruits, honey, and some vegetables, known for being a part of sucrose (table sugar).

Photoheterotrophs

Organisms that obtain their energy from sunlight but rely on organic compounds from the environment as their carbon source.