Which of the Following Procedures Is Ordinarily Performed by an Accountant

question 80

Multiple Choice

Which of the following procedures is ordinarily performed by an accountant in a compilation engagement of a nonpublic entity?

• A) Reading the financial statements to consider whether they are free of obvious mistakes in the application of accounting principles
• B) Obtaining written representations from management indicating that the compiled financial statements will not be used to obtain credit
• C) Making inquiries of management concerning actions taken at meetings of the stockholders and the board of directors
• D) Applying analytical procedures designed to corroborate management's assertions that are embodied in the financial statement components
• E) The preparation of a cutoff bank reconciliation

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Definitions:

Assessment Findings

Outcomes or conclusions derived from systematically evaluating information, typically in a professional setting like healthcare or education.

Grandiosity

An exaggerated sense of one's importance, power, knowledge, or identity, often seen in manic episodes and certain personality disorders.

Manipulation

The act of controlling or influencing others in an unfair or deceitful way to gain personal benefits.

Limit Setting

Establishing and enforcing clear, consistent rules and boundaries to guide behavior, often used in therapeutic settings to manage challenging behaviors.