When Engaged to Compile the Financial Statements of a Nonpublic

question 53

Multiple Choice

When engaged to compile the financial statements of a nonpublic entity, an accountant is required to possess a level of knowledge of the entity's accounting principles and practices. This requirement most likely will include obtaining a general understanding of the:

• A)stated qualifications of the entity's accounting personnel.
• B)design of the entity's internal controls placed in operation.
• C)risk factors relating to misstatements arising from illegal acts.
• D)internal control awareness of the entity's senior management.

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Definitions:

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Customer Experience

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