In a compilation engagement, an accountant drafts financial statements of an entity based on information provided by the:
A) shareholders.
B) audit committee.
C) management or owners.
D) board of directors.
E) company.

Question

Quizplus · Accepted Answer

In a compilation engagement, the accountant prepares financial statements based on information provided by the management or owners of the entity. Therefore, choice C is the correct answer. The other choices are not typically involved in providing information for a compilation engagement. Shareholders, board of directors, and audit committee may have oversight responsibilities but are not typically involved in providing information for financial statements. The company itself is not a distinct entity and would not be responsible for providing information.

In a Compilation Engagement, an Accountant Drafts Financial Statements of an Entity