Which of the following describes how the objective of a review of financial statements differs from the objective of a compilation engagement? a. The primary objective of a review engagement is to test the completeness of the financial statements prepared, but a compilation tests for reasonableness. b. The primary objective of a review engagement is to provide positive assurance that the financial statements are fairly presented, but a compilation provides no such assurance. c. In a review engagement, accountants provide limited assurance, but a compilation expresses no assurance. d. In a review engagement, accountants provide reasonable or positive assurance that the financial statements are fairly presented, but a compilation provides limited assurance. Show
1. Compilation: Presenting financial statements that are the presentation of management without undertaking to express any assurance on the statements. 2. Review: Performing inquiry and analytical procedures that provide the accountantwith a reasonable basis for expressing limited assurance that there are no material modifications needed to be in conformance with GAAP or OCBOA. So c option is correct Option d sounds more accurate; where accountants have to provide limited assurance on completeness and fairly presentation of FS to the senior management. A review engagement is conducted to provide limited assurance that there are no material modifications that should be made to the financial statements for them to be in conformity with the financial reporting framework. In a compilation engagement, the objective is to assist management in presenting financial information in the form of financial statements without undertaking to provide any assurance that there are no material modifications that should be made to the financial statements so they will conform to the acceptable financial reporting framework. so C is the correct one. c would be correct answer. compilation is purely preparation of the data based on a specific request from client , review engagements provide limited assurance. our management team are decided frist ARSCs. The ARSC is the Accounting and Review Services Committee. This committee issues the Statements on Standards for Accounting and Review Services (SSARSs), which govern the performance of compilation and review engagements. In addition, AICPA members who perform compilation and review engagements are governed by the AICPA's Code of Professional Conduct and the Statements of Quality Control Standards (SQCSs), which establish standards and provide guidance on a firm's system of quality control. What is a reviewed financial statements?Reviewed financial statements encompass an evaluation of the entity's financial statements, performing inquiry and analytical procedures, and obtaining moderate assurance that no relevant changes are necessary to the financial statements.
What is a compilation of financial statements?A compilation is the one of the lowest level financial statement services an accountant can provide. A compilation consists essentially of presenting information obtained from a client in financial statement format. There is no assurance being provided by the accountant.
Which of the following statements should not be included in an accountant's standard report based on the compilation of an entity's financial statements?An accountant's standard compilation report of an entity's financial statements should not include a statement that the accountant does not express an opinion but expresses only limited assurance on the financial statements. An accountant should not express any level of assurance on compiled financial statements.
Which of the following procedures is not usually performed by the accountant during a review engagement of a nonpublic entity?Which of the following procedures is not usually performed by the accountant in a review engagement of a nonpublic entity? Communicating any material weaknesses discovered during the study and evaluation of internal control.
|
Which of the following describes a manner in which a review of financial statements differs from the objective of a compilation engagement?
zusammenhängende Posts
Urheberrechte © © 2024 ketiadaan Inc.
