Which of the Following Activity Is Not Part of the Compilation

question 88

Multiple Choice

Which of the following activity is not part of the compilation of prospective financial statements?

• A) Assembling prospective financial statements based on the responsible party's assumptions.
• B) Performing compilation procedures, including reading the prospective financial statements, along with their assumptions and accounting policies, and considering whether they appear to be presented in conformity with AICPA presentation guidelines and that they are not obviously inappropriate.
• C) Issuing a compilation report.
• D) Providing assurance on the prospective financial statements.

---

Definitions:

James-Lange Theory

A theory suggesting that emotions result from the perception of bodily reactions to an event.

Arousal Theory

A theory suggesting that people are motivated to maintain an optimal level of arousal, seeking to increase or decrease stimulation to achieve this level.

Spillover Effect

The phenomenon where an emotional reaction to one event spills over and influences the response to another event.

Guilty Knowledge Test

A psychological assessment that measures physiological responses to recognize familiarity with information that should only be known to the guilty party.