When an Accountant Is Engaged to Compile a Nonpublic Entity's

question 32

Multiple Choice

When an accountant is engaged to compile a nonpublic entity's financial statements that omit substantially all disclosures required by GAAP,the accountant should indicate in the compilation report that the financial statements

• A)might influence users' conclusions about the business,if the disclosures were included.
• B)are prepared in conformity with a comprehensive basis of accounting other than GAAP.
• C)are not compiled in accordance with Statements on Standards for Accounting and Review Services.
• D)are special-purpose financial statements that are not comparable to those of prior periods.

---

Definitions:

Talkativeness

The tendency to engage in frequent or excessive talking, often reflecting an individual's personality trait or a specific social context encouraging verbal communication.

Self-report

A method of gathering data where individuals provide information about themselves, often used in surveys and questionnaires.

Personality-relevant

Pertain to aspects or factors that are important or significant to the understanding or analysis of an individual’s character traits.

Trait Terms

Descriptors used to identify consistent patterns in an individual's behavior, thought, and emotions.