Before issuing a report on the compilation of financial statements of a nonpublic entity,the accountant should
A) apply analytical procedures to selected financial data to discover any material misstatements.
B) corroborate at least a sample of the assertions management has embodied in the financial statements.
C) inquire of the entity's personnel whether the financial statements omit substantially all disclosures.
D) read the financial statements to consider whether the financial statements are free from obvious material errors.

Question

Quizplus · Accepted Answer

The accountant should read the financial statements to ensure they are free from obvious material errors before issuing a report on the compilation of financial statements. This is part of the accountant's responsibility to ensure the statements are not misleading.

Before Issuing a Report on the Compilation of Financial Statements