An Accountant Performing a Compilation or Review of the Financial

question 712

Multiple Choice

An accountant performing a compilation or review of the financial statements of a nonissuer should:

• A) Be able to justify departures from SSARS.
• B) Never depart from SSARS guidelines.
• C) Exercise professional judgment in applying SSARS, since they are considered recommendations as opposed to standards.
• D) Not depart from Statements on Auditing Standards.

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Definitions:

Learning by Doing

A theory that suggests proficiency and efficiency improve over time through practice and hands-on experience.

Regional Level

Refers to the geographical tier that encompasses localities within a larger national or international context, focusing on specific area-based initiatives or characteristics.

Smaller Firms

Refers to businesses that are relatively small in size, often characterized by fewer employees, lower annual revenues, and limited market share compared to larger corporations.

Research and Development (R&D)

is a business or government activity that focuses on the pursuit of innovation through scientific research and product development.