Prior to Commencing the Compilation of Financial Statements of a Nonpublic

question 56

Multiple Choice

Prior to commencing the compilation of financial statements of a nonpublic entity, the accountant should:

• A)perform analytical procedures sufficient to determine whether fluctuations among account balances appear reasonable.
• B)complete the preliminary phase of the study and evaluation of the entity's internal control.
• C)verify that the financial information supplied by the entity agrees with the books of original entry and supporting documentation.
• D)acquire a knowledge of any specialized accounting principles and practices used in the entity's industry.

---

Definitions:

Improve

To make or become better; to enhance the quality, value, or performance of something.

Positive Reinforcer

A stimulus which, when presented after a behavior, increases the likelihood of that behavior occurring again in the future.

Negative Reinforcer

An unpleasant or adverse stimulus that, when removed after a behavior, increases the likelihood of that behavior being repeated.

Mother

A female parental figure who may give birth to, adopt, or rear a child in the role of providing care, nurture, and protection.