When compiling the financial statements of a private company,an accountant should ________.
A)review agreements with financial institutions for restrictions on cash balances
B)study and understand the client's business
C)enquire of key personnel concerning related parties and subsequent events
D)perform ratio analyses of the financial data of comparable prior periods

Question

Quizplus · Accepted Answer

When compiling the financial statements of a private company, studying and understanding the client's business is essential for the accountant to accurately prepare the financial statements. While the other options may be important considerations, they are not directly related to compiling the financial statements.

When Compiling the Financial Statements of a Private Company,an Accountant