An accountant’s standard report on a compilation should state that the accountant (A) Has not audited or reviewed the accompanying financial statements. (B) Obtained an understanding of the accounting practices in the client’s industry. (C) Is not aware of any material modifications that should be made to the financial statements for them to conform with GAAP. (D) Is not responsible for disclosing errors, fraud, or illegal acts.

Business · High School · Thu Feb 04 2021

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(A) Has not audited or reviewed the accompanying financial statements.

When an accountant compiles financial statements, they assist in presenting the financial data provided by the management of a company without undertaking to express any assurance on the statements. Therefore, the standard report should clearly indicate that the accountant has not audited or reviewed the financial statements to ensure users are aware of the level of service provided.

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