[Dan T]

So I thought inquiries and analytical procedures only pertained to reviews, however I stumbled upon this question and it threw me off. I immediately saw the words “internal control” and “inquiries” and ruled out the first three so I picked D which was wrong. So do you make inquiries in compilations?

Which of the following procedures should an accountant perform during an engagement to compile

prospective financial statements?

a. Test the entity’s internal controls to determine if adequate controls exist so that financial projections

can be reasonably achieved.

b. Make inquiries prior to the date of the report about possible future transactions that may impact the

forecast once the report is issued.

c. Make inquiries about the accounting principles used in the preparation of the prospective financial

statements.

d. Compare the prospective financial statements with the entity’s historical results for the prior year.

AUD - 75 ☺
FAR - 65, 71, 70, 77 ☺
BEC - 80 ☺
REG - 73, 66, 79 ☺ 2/28/15

Done!

[stoleway]

Dan T…I think C is the correct answer, even though inquiries and analytical procedures are not required for compliation; it is your duty to understand the nature of the entity, practises and accounting principles embedded in the financial statement youre compiling. C is very appropriate for this purpose.

D is an analytical procedure is not required for compilations

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[stoleway]

Dan T…I think C is the correct answer, even though inquiries and analytical procedures are not required for compliation; it is your duty to understand the nature of the entity, practises and accounting principles embedded in the financial statement youre compiling. C is very appropriate for this purpose.

D is an analytical procedure is not required for compilations

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[Dan T]

hmm that makes sense after reading the whole answer, that word just threw me off. Thanks

AUD - 75 ☺
FAR - 65, 71, 70, 77 ☺
BEC - 80 ☺
REG - 73, 66, 79 ☺ 2/28/15

Done!

[Dan T]

hmm that makes sense after reading the whole answer, that word just threw me off. Thanks

AUD - 75 ☺
FAR - 65, 71, 70, 77 ☺
BEC - 80 ☺
REG - 73, 66, 79 ☺ 2/28/15

Done!

[Author]

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