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

An accountant should obtain an understanding of the accounting principles and practices of the industry to ensure that the financial statements are prepared in accordance with the applicable framework.

Before Performing a Compilation of the Financial Statements of a Nonpublic