Before Performing a Compilation of the Financial Statements of a Nonpublic

question 61

Multiple Choice

Before performing a compilation of the financial statements of a nonpublic entity, an accountant should:

• A)perform a thorough study and evaluation of the internal control system.
• B)complete a series of inquiries concerning the entity's procedures for recording, classifying, and summarizing transactions.
• C)design working papers intended to provide sufficient competent evidential matter to afford a reasonable basis for a compilation opinion.
• D)obtain an understanding of the accounting principles and practices of the industry in which the entity operates.

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Definitions:

Created Environment

An environment that is intentionally designed or modified by human action to achieve specific health or therapeutic outcomes.

Extrapersonal Environment

The external surroundings, conditions, or factors that exist outside of the individual but can influence their behavior or condition.

Spiritual Variable

An element in health and wellness studies that considers the influence of spiritual beliefs, practices, and experiences on an individual's health and healing processes.

Physiological Variable

A factor that can change and affect the functions of the body or its systems.