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

Question

Quizplus · Accepted Answer

In a compilation engagement, the accountant is responsible for presenting financial statements that are free from obvious errors. The accountant does not need to obtain written representations from management or inquire about actions taken at meetings of the stockholders and board of directors. Additionally, analytical procedures are not typically performed in a compilation engagement.

Which of the Following Procedures Is Ordinarily Performed by an Accountant