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:

Age

A measure of the amount of time an individual or object has existed from a particular starting point, typically measured in years.

Gender

The adoption of characteristics associated with men and women; acquired through socialization.

Chronological Age

The exact age of a person or thing, measured in years from the date of birth or creation.

Well-Being

A state of comfort, health, or happiness, encompassing both physical and psychological aspects.