Before performing a compilation of the financial statements of a nonpublic entity, an accountant should:
A)perform a thorough study and evaluation of the internal control system.
B)complete a series of inquiries concerning the entity's procedures for recording, classifying, and summarizing transactions.
C)design working papers intended to provide sufficient competent evidential matter to afford a reasonable basis for a compilation opinion.
D)obtain an understanding of the accounting principles and practices of the industry in which the entity operates.

Question

Quizplus · Accepted Answer

When performing a compilation of financial statements for a nonpublic entity, an accountant is not required to perform a thorough study and evaluation of internal controls, complete a series of inquiries regarding the entity's procedures, or design working papers to provide a basis for a compilation opinion. Instead, the accountant should obtain an understanding of the accounting principles and practices of the industry in which the entity operates to ensure that the financial statements are compiled appropriately.

Before Performing a Compilation of the Financial Statements of a Nonpublic