Prior to Commencing the Compilation of Financial Statements of a Nonpublic

question 56

Multiple Choice

Prior to commencing the compilation of financial statements of a nonpublic entity, the accountant should:

• A)perform analytical procedures sufficient to determine whether fluctuations among account balances appear reasonable.
• B)complete the preliminary phase of the study and evaluation of the entity's internal control.
• C)verify that the financial information supplied by the entity agrees with the books of original entry and supporting documentation.
• D)acquire a knowledge of any specialized accounting principles and practices used in the entity's industry.

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Definitions:

Statistics Canada

Statistics Canada is the national statistical office of Canada, providing data on the country's economy, population, and society for public and government use.

Census Family

A term used in census data collection to describe a household unit consisting of a married couple (with or without children), a common-law couple, or a lone parent family.

Statistics Canada

The national statistical office of Canada, responsible for producing statistics on Canada's population, economy, society, and environment.

Circadian Rhythms

Biological cycles that occur on a roughly 24-hour basis, regulating various physiological processes such as sleep-wake cycles, hormone release, and body temperature.