An Accountant's Standard Report Issued After Compiling the Financial Statements

question 6

Multiple Choice

An accountant's standard report issued after compiling the financial statements of a nonpublic entity should state that

• A)I am not aware of any material modifications that should be made to the accompanying financial statements.
• B)A compilation consists principally of inquiries of company personnel and analytical procedures.
• C)A compilation is limited to presenting in the form of financial statements information that is the representation of management.
• D)A compilation is substantially less in scope than an audit in accordance with GAAS, the objective of which is the expression of an opinion.

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Definitions:

Top Management

refers to the highest level of management within an organization, responsible for setting strategic goals and making key decisions.

Competitors

Other businesses that offer similar products or services within the same market and compete for the same customers.

Suppliers

Entities that provide goods or services to another organization, often playing a critical role in the supply chain.

Resellers

Businesses or individuals that purchase goods or services with the intent to sell them rather than consume or use them.