Which of the Following Statements Should Be Included in an Accountant's

question 507

Multiple Choice

Which of the following statements should be included in an accountant's standard report based on the compilation of a nonissuer's financial statements?

• A) A compilation consists principally of inquiries of company personnel and analytical procedures applied to financial data.
• B) A compilation is limited to presenting in the form of financial statements information that is the representation of management.
• C) A compilation is not designed to detect material modifications that should be made to the financial statements.
• D) A compilation is substantially less in scope than an audit in accordance with generally accepted auditing standards.

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Definitions:

Arithmetic Operator

Symbols used in mathematics and programming to denote operations like addition, subtraction, multiplication, and division.

Range Finder

A device or tool used to measure the distance from the observer to a target, commonly used in photography, golf, and surveying.

Cell References

Indicators that point to specific cells in a spreadsheet, used for calculations or to display their contents.

Formula

A mathematical or logical expression entered into a spreadsheet or software that performs calculations based on specified inputs or data.