When performing compilation services, the accountant is not required to obtain an understanding of the client's internal control.

Question

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According to generally accepted accounting principles (GAAP), compilation services do not require the accountant to obtain an understanding of the client's internal control. However, if the accountant becomes aware of material misstatements or fraud during the compilation process, they are required to report it to management.

When Performing Compilation Services, the Accountant Is Not Required to Obtain