In a compilation engagement,
A)all appropriate disclosures must be presented.
B)managers or owners may choose to omit all the footnote disclosures.
C)financial statements must be presented in prescribed forms.
D)an auditor provides only negative assurance.

Question

Quizplus · Accepted Answer

In a compilation engagement, managers or owners may choose to omit all the footnote disclosures as long as it is clearly stated in the accountants' compilation report that no assurance is provided and that the financial statements have not been audited or reviewed. However, if footnote disclosures are included, they must be appropriate for the financial statements. The financial statements must also be presented in a format that is appropriate for the applicable reporting framework. As for the assurance provided, the accountant provides no assurance, only a compilation report stating that the financial statements have been compiled in accordance with the applicable reporting framework.

In a Compilation Engagement