The Accountant's Standard Report for a Compilation Service Would Not

question 7

Multiple Choice

The accountant's standard report for a compilation service would not include a statement that

• A) A compilation service has been performed in accordance with standards established by the AICPA.
• B) Financial statement information is the representation of the owners of the business.
• C) Compilation service consists primarily of inquiries of company personnel and analytical procedures applied to financial data.
• D) Financial statements have not been audited or reviewed and the accountant does not express an opinion or any other form of assurance.

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Definitions:

Colour Constancies

The ability to perceive colors of objects, under varying lighting conditions, as being relatively constant even when the type of light changes.

Accommodate

To adjust actions or support needs, often making space or provisions for something.

Light Purity

A measure of the extent to which a light source emits a single wavelength, affecting the saturation of the perceived color.

Brightness

A perception of how luminous an object appears, depending on the amount of light it reflects or emits.