Before Performing a Compilation of the Financial Statements of a Nonpublic

Multiple Choice

Before performing a compilation of the financial statements of a nonpublic entity, an accountant should:

A) perform a thorough study and evaluation of the internal control system.
B) complete a series of inquiries concerning the entity's procedures for recording, classifying, and summarizing transactions.
C) design working papers intended to provide sufficient competent evidential matter to afford a reasonable basis for a compilation opinion.
D) obtain an understanding of the accounting principles and practices of the industry in which the entity operates.