An Accountant's Standard Report Issued After Compiling the Financial Statements

question 236

Multiple Choice

An accountant's standard report issued after compiling the financial statements of a nonissuer should state that:

• A) I am not aware of any material modifications that should be made to the accompanying financial statements.
• B) A compilation consists principally of inquiries of company personnel and analytical procedures.
• C) A compilation is limited to presenting in the form of financial statements information that is the representation of management.
• D) A compilation is substantially less in scope than an audit in accordance with GAAS, the objective of which is the expression of an opinion.

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Definitions:

Narrow

Limited in breadth, scope, or extent; often referring to a specific or specialized focus in various contexts.

Centralized

This term refers to a system where decision-making authority is concentrated at a single point or in a single group within the organization.

Traditional Principles

Basic tenets or rules that have been established over time, guiding actions and beliefs in various contexts.

Promotional Programs

Marketing strategies designed to inform, persuade, or remind target audiences about a product or service to increase awareness or sales.