May an Accountant Accept an Engagement to Compile or Review

question 632

Multiple Choice

May an accountant accept an engagement to compile or review the financial statements of a not-for-profit entity if the accountant is unfamiliar with the specialized industry accounting principles, but plans to obtain the required level of knowledge before compiling or reviewing the financial statements?

• A) Option A
• B) Option B
• C) Option C
• D) Option D

---

Definitions:

Extraordinary Cooperation

A situation where an individual or organization goes above and beyond the standard expectations to work with others towards a common goal or in assisting in legal matters.

Investigation

A systematic examination or inquiry into something, often conducted to uncover facts or information about a particular incident, allegation, or phenomenon.

Negligent Preparation

Refers to the lack of reasonable care in the preparation of documentation or products, potentially leading to harm or loss.

Financial Statements

are formal records of the financial activities and position of a business, person, or other entity, presenting the financial performance over a specific period.