An Accountant Who Reviews the Financial Statements of a Nonpublic

question 42

Multiple Choice

An accountant who reviews the financial statements of a nonpublic entity should issue a report stating that a review

• A) is substantially equivalent in scope to an audit.
• B) is substantially more in scope than a compilation.
• C) is substantially less in scope than an audit.
• D) provides only minimal assurance that the financial statements are fairly presented.

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Definitions:

Normative

Pertaining to prescriptive assessments or statements that express judgments about what ought to be, as opposed to descriptive statements which detail what is.

Government Spending

The total amount of public expenditure by the government on various services and infrastructure, contributing to the nation's economic activity.

Normative

Relating to prescriptive or value-based judgments, indicating what should be rather than what is.

Oil Imports

The purchase of foreign-sourced oil for domestic use, reflecting a country's demand for energy resources not available within its own borders.