When an accountant is engaged to compile a nonissuer's financial statements that omit substantially all disclosures required by GAAP, the accountant should indicate in the compilation report that the financial statements are:

Question

Quizplus · Accepted Answer

Choice "A" is correct. If substantially all disclosures required by GAAP are omitted from compiled financial statements, the accountant's compilation report should state that the financial statements are not designed for those who are not informed about such matters. Choice "B" is incorrect. Omission of substantially all disclosures is not a comprehensive basis of accounting other than GAAP. Choice "C" is incorrect. If the disclosure is made, the compilation is prepared in accordance with SSARS. Choice "D" is incorrect. Omission of substantially all disclosures does not make these special-purpose financial statements.

When an Accountant Is Engaged to Compile a Nonissuer's Financial