An Accountant's Communication on the Financial Statements in a Compilation

question 19

Multiple Choice

An accountant's communication on the financial statements in a compilation engagement would not include a statement that

• A)The statements may not be appropriate for the purposes of users.
• B)The financial statement information has been compiled.
• C)A compilation engagement consists primarily of inquiries of company personnel and analytical procedures applied to financial data.
• D)Financial statements have not been audited or reviewed and the accountant did not attempt to verify accuracy or completeness.

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Definitions:

Intra-Entity Asset Transfers

Transactions involving the transfer of assets between divisions or units within the same company.

Net Income

Company's earnings following the deduction of all expenses and taxes from its revenue.

Intra-Entity Asset Transfers

Transactions involving the transfer of assets between divisions or departments within the same entity, often for internal record-keeping and consolidation purposes.

Net Income

The net income a company earns once all costs and taxes are subtracted from its total revenues.