Compiled Financial Statements of a Nonpublic Entity Should Be Accompanied

question 96

Multiple Choice

Compiled financial statements of a nonpublic entity should be accompanied by a report stating that

• A) The scope of the accountant's procedures has not been restricted in testing the financial information that is the representation of management.
• B) The accountant assessed the accounting principles used and significant estimates made by management.
• C) The accountant does not express an opinion or any other form of assurance on the financial statements.
• D) A compilation consists primarily of inquiries of entity personnel and analytical procedures applied to financial data.

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Definitions:

Right to Cure

The right to cure allows a party in breach of a contract a specified period to fix the breach before the other party can pursue legal remedies.

Substantial Impairment

A significant reduction in the ability or capacity of something, often used in legal contexts regarding the impairment of physical or mental functions.

Perfect Tender Rule

A principle in the sale of goods law that allows buyers to reject goods if they do not exactly meet the terms of the contract.

Substantial Perform

This refers to a situation in contract law where a party has completed enough of their contractual obligations that they are considered to have fulfilled the contract, despite minor issues or incomplete details.