The objective of a compilation engagement in the U.S.is to
A)express limited assurance that there are no material modifications that should be made to the financial statements in order for the statements to be in conformity with GAAP
B)present in the form of financial statements,information that is the representation of management while expressing limited assurance on the financial statements
C)express limited assurance that there are no material misstatements in the financial statements
D)present in the form of financial statements,information that is the representation of management without expressing any assurance on the financial statements

Question

Quizplus · Accepted Answer

The objective of a compilation engagement in the U.S. is to present in the form of financial statements, information that is the representation of management without expressing any assurance on the financial statements. This means that the accountant simply compiles the financial statements without performing any verification or assessment of the information provided by management. Therefore, option D is the correct choice. Option A refers to a review engagement, option B refers to an agreed-upon procedures engagement, and option C refers to an audit engagement.

The Objective of a Compilation Engagement in the U