The procedure that an accountant performs to determine whether the financial statements of a business are materially accurate is a(n):

Question

Quizplus · Accepted Answer

An audit is a detailed examination and verification of a company's financial statements to ensure that they are materially accurate. It involves reviewing accounting records and financial transactions, testing internal controls, and obtaining evidence from third-party sources. A review is less extensive and involves analyzing the financial statements using analytical procedures, inquiries with management, and limited review procedures. A compilation involves preparing financial statements based on information provided by management without independently verifying the data. Verification refers to confirming the accuracy of a specific transaction or item, while account sampling involves selecting and testing a sample of transactions to evaluate the overall accuracy of the financial records.

The Procedure That an Accountant Performs to Determine Whether the Financial