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.

---

Definitions:

Charles Dickens

A celebrated British novelist of the Victorian era, known for his vivid characters and depictions of social issues.

Adequate Compensation

Fair and reasonable recompense, often used in the context of eminent domain or when damages are awarded in a legal dispute.

Consequential Damages

Refers to indirect or secondary financial losses suffered as a result of a breach of contract, beyond the immediate scope of the contractual obligations.

Cover

In the context of contracts, the term refers to a buyer's procurement of goods as a substitute for those promised but not delivered by the seller.