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
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