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.

Question

Quizplus · Accepted Answer

A compilation provides no assurance on the financial statements, which is the key characteristic distinguishing it from reviews (which provide limited assurance) and audits (which provide high assurance).

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