Before Issuing a Report on the Compilation of Financial Statements

question 407

Multiple Choice

Before issuing a report on the compilation of financial statements of a nonissuer, the accountant should:

• A) Apply analytical procedures to selected financial data to discover any material misstatements.
• B) Corroborate at least a sample of the assertions management has embodied in the financial statements.
• C) Inquire of the client's personnel whether the financial statements omit substantially all disclosures.
• D) Read the financial statements to consider whether the financial statements are free from obvious material errors.

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Definitions:

Phenylketonuria

A rare inherited disorder that increases the levels of a substance called phenylalanine in the blood, leading to intellectual disability and other health issues unless managed by diet from an early age.

Phenylalanine

An essential amino acid found in the human body used by the body to produce proteins and other important molecules, which is obtained through the diet.

Intellectual Disability

A disability characterized by significant limitations in both intellectual functioning and in adaptive behavior, which covers many everyday social and practical skills.

Group Homes

Residential facilities providing therapeutic and supportive living situations for individuals who cannot live independently.