When an Accountant Is Engaged to Compile a Nonissuer's Financial

question 464

Multiple Choice

When an accountant is engaged to compile a nonissuer's financial statements that omit substantially all disclosures required by GAAP, the accountant should indicate in the compilation report that the financial statements are:

• A) Not designed for those who are uninformed about the omitted disclosures.
• B) Prepared in conformity with a comprehensive basis of accounting other than GAAP.
• C) Not compiled in accordance with Statements on Standards for Accounting and Review Services.
• D) Special-purpose financial statements that are not comparable to those of prior periods.

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Definitions:

Carbon Emissions

The release of carbon dioxide into the atmosphere, primarily from burning fossil fuels, contributing to climate change.

Automobiles

Wheeled motor vehicles used for transportation, typically powered by an internal combustion engine or electric motor.

Post Hoc

A logical fallacy that assumes a causal relationship between two events simply because one event occurred after the other.

Inductive Reasoning

A logical process in which multiple premises, all believed true or found true most of the time, are combined to obtain a specific conclusion.