Prior to commencing the compilation of financial statements of a nonpublic entity, the accountant should:
A. acquire a knowledge of any specialized accounting principles and practices used in the entity's industry.
B. complete the preliminary phase of the study and evaluation of the entity's internal control.
C. verify that the financial information supplied by the entity agrees with the books of original entry and supporting documentation.
D. perform analytical procedures sufficient to determine whether fluctuations among account balances appear reasonable.
Answer: A
You might also like to view...
Which of the following information is NOT contained in the Social Security numbers issued by the Social Security Administration?
a. Area b. Person's serial number c. Age d. Group
When calculating a partial year's depreciation, the length of time an asset has been owned usually is rounded to the nearest month. This rounding practice is justified by the principle or rule of
A) matching. B) materiality. C) conservatism. D) full disclosure.
A landlord owes a duty to deliver possession of the leased premises to the lessee
Indicate whether the statement is true or false
Hospitals, movie theatres, and restaurants are examples of business in ______
a. manufacturing b. human resources c. services d. marketing