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.

---

Definitions:

Management

A process designed to achieve an organization's objectives by using its resources effectively and efficiently in a changing environment.