Compiled financial statements should be accompanied by an accountant's report stating that:

Question

Quizplus · Accepted Answer

Choice "B" is correct. Compiled financial statements should be accompanied by a report stating that the financial statements were compiled in accordance with SSARS issued by the AICPA. Choice "A" is incorrect. An audit, not a compilation, includes assessing the accounting principles used and significant management estimates, as well as evaluating the overall financial statement presentation. Choice "C" is incorrect. A review report, not a compilation report, includes the phrase, "is substantially less in scope than an audit." Choice "D" is incorrect. The accountant expresses no such assurance in a compilation engagement; limited assurance (i.e., "…accountant is not aware of…") is expressed in a review engagement.

Compiled Financial Statements Should Be Accompanied by an Accountant's Report