Which of the following is an accounting service that involves performing inquiry and analytical procedures as a reasonable basis for expressing limited assurance that no material modifications need to be made to the financial statements in order for the financial statements to conform to GAAP?
A) A compilation.
B) An audit.
C) A review.
D) An agreed upon procedure.

Question

Quizplus · Accepted Answer

A review involves performing inquiry and analytical procedures to provide limited assurance that no material modifications need to be made to the financial statements in order for them to conform to GAAP. A compilation involves presenting financial data in the form of financial statements without providing any assurance. An audit involves performing extensive testing of financial data to provide reasonable assurance that financial statements are free from material misstatements. An agreed upon procedure involves performing specific procedures and reporting the findings to the client without expressing any assurance.

Which of the Following Is an Accounting Service That Involves