Kell Engaged March, CPA, to Submit to Kell a Written

question 811

Multiple Choice

Kell engaged March, CPA, to submit to Kell a written personal financial plan containing unaudited personal financial statements. March anticipates omitting certain disclosures required by GAAP because the engagement's sole purpose is to assist Kell in developing a personal financial plan. For March to be exempt from complying with the requirements of SSARS 1, Compilation and Review of Financial Statements, Kell is required to agree that the:

• A) Financial statements will not be presented in comparative form with those of the prior period.
• B) Omitted disclosures required by GAAP are not material.
• C) Financial statements will not be disclosed to a non-CPA financial planner.
• D) Financial statements will not be used to obtain credit.

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Definitions:

Lead Time

The time interval from when an order is placed until it is received and available for use or sale.

MPS

Master Production Schedule, a plan for individual commodities to be produced in each time period, such as production, staffing, inventory.

Common Parts

Components or elements that are standard and used interchangeably among different products or systems.