Which of the Following Does Not Result in a Modification

question 37

Multiple Choice

Which of the following does not result in a modification of a compilation report?

• A)A lack of independence on the part of the auditors.
• B)A departure from generally accepted accounting principles.
• C)A lack of adequate disclosure in the financial statements.
• D)A lack of consistent application of generally accepted accounting principles.

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Definitions:

Receive Inventory

The process of accepting, documenting, and storing goods delivered to a business.

Enter Bill

The process of recording an invoice received from a vendor or supplier into the accounting system.

Merchandise Company

A business entity primarily engaged in the retail or wholesale buying and selling of goods for profit.

Opening Adjusting Entry

An entry made in the books at the beginning of an accounting period to adjust the balances of accounts from the previous period, ensuring accurate and up-to-date financial records.