An Accountant's Standard Report Issued After Compiling the Financial Statements

question 35

Multiple Choice

An accountant's standard report issued after compiling the financial statements of a nonpublic entity should state that:

• A)The accountant is not aware of any material modifications that should be made to the accompanying financial statements.
• B)A compilation consists principally of inquiries of company personnel and analytical procedures.
• C)A compilation provides no form of assurance on the financial statements.
• D)A compilation is greater in scope than a financial statement preparation form of association,but lesser than an audit.

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Definitions:

Signal Strength

A measure of the power level of a transmitted signal as received by a radio receiver or similar device.

Treisman

Anne Treisman was a cognitive psychologist renowned for her work in attention, notably the feature integration theory which describes how we perceive objects as wholes even when attention is distributed among the separate features.

Broadbent

Refers to Donald Broadbent, a psychologist known for his work in the field of information processing and attention theories.

Short-term Memory

A temporary storage system in the brain capable of holding a small amount of information in an easily accessible state for a short period.