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

question 67

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 not comparable to those of prior periods.

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Definitions:

Binge Drinking

The consumption of an excessive amount of alcohol in a short period of time, typically defined as five or more drinks for men and four or more drinks for women in about two hours.

Analysis Result

The outcome or conclusions derived from systematically examining and interpreting data.

Probability

A measure of the likelihood that an event will occur.

Research Hypothesis

A statement made by a researcher predicting a possible outcome or association between two or more variables in a study, often tested against the null hypothesis.