Compiled Financial Statements Should Be Accompanied by an Accountant's Report

question 597

Multiple Choice

Compiled financial statements should be accompanied by an accountant's report stating that:

• A) A compilation includes assessing the accounting principles used and significant management estimates, as well as evaluating the overall financial statement presentation.
• B) The accountant compiled the financial statements in accordance with Statements on Standards for Accounting and Review Services.
• C) A compilation is substantially less in scope than an audit in accordance with GAAS, the objective of which is the expression of an opinion.
• D) The accountant is not aware of any material modifications that should be made to the financial statements to conform with GAAP.

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Definitions:

Marginal Probability

The probability of an event occurring in a probability distribution, regardless of the outcome of other variables.

Probability Distribution

A mathematical function that describes the likelihood of getting each possible value that a random variable can assume.

Car Sales

The number of automobiles sold within a specific time period.

Joint Probability

The chance that two or more incidents will happen concurrently.