Which of the following best describes the responsibility of the CPA in performingcompilation services for a company?(1) The CPA has to satisfy only himself or herself that the financial statements wereprepared in conformity with accounting standards.(2) The CPA must understand the client’s business and accounting methods andread the financial statements for reasonableness.(3) The CPA should obtain an understanding of internal control and perform testsof controls.(4) The CPA is relieved of any responsibility to third parties
Which of the following best describes the responsibility of the CPA in performingcompilation services for a company?(1) The CPA has to satisfy only himself or herself that the financial statements wereprepared in conformity with accounting standards.(2) The CPA must understand the client’s business and accounting methods andread the financial statements for reasonableness.(3) The CPA should obtain an understanding of internal control and perform testsof controls.(4) The CPA is relieved of any responsibility to third parties
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Which of the following best describes the responsibility of the CPA in performing
compilation services for a company?
(1) The CPA has to satisfy only himself or herself that the financial statements were
prepared in conformity with accounting standards.
(2) The CPA must understand the client’s business and accounting methods and
read the financial statements for reasonableness.
(3) The CPA should obtain an understanding of internal control and perform tests
of controls.
(4) The CPA is relieved of any responsibility to third parties
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