An Auditor Compiles the Financial Statements for a Nonprofit Firm

question 73

Multiple Choice

An auditor compiles the financial statements for a nonprofit firm. Per GAAS, the auditor must:

• A) issue an audit opinion on the financial statements.
• B) issue a report as to the work performed on the financial statements.
• C) require management sign a representation letter.
• D) depending on the circumstances, the auditor may choose any of the above.

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Definitions:

Transgressions

Acts that go against a command, law, or set of rules, often resulting in a breach or violation.

Knowledge of Events

Awareness or understanding of incidents or happenings within a specific context or period.

Reviewing Newspapers Online

The act of examining, analyzing, and assessing newspapers that are available on the internet.

Public's Right

The entitlements and freedoms that the public or individuals within a society are guaranteed by law or social agreement.