Preparing financial statements based on data

Reference no: EM13700975

After reading and discussing how important it is for auditors to gather evidence to back up client claims, you are now introduced to accounting services where it is unnecessary to verify management's information.

In providing these compilations, how comfortable would you be in preparing financial statements based on data that you are not going to verify?
What concerns would you have signing off on these compilations as a CPA?
Because you are not performing audit services on the compilations, how do you know if information you are given is true?
What types of questions could you ask your client that would fall within the realm of compilations without crossing the line into auditing?

Reference no: EM13700975

Questions Cloud

Automated process of accounting information systems : Similar to any business, Kudler Fine Foods uses payroll, accounts payable, accounts receivable, and inventory processes. All four of these processes might be improved by the use of accounting information systems. Your accounting firm has assign..

Prepare a production budget for the first quarter : Company XYZ produces three products; p1, p2, and p3. The sales department has projected that we can sell 15,000 of p1 and p2 and 22,500 of p3. The company wants an ending inventory of each equal to 10% of sales. Current inventories are at 1300..

Assess the organization financialhealth : Accounting-basedperformance evaluation is used regularly to assess the organization's financialhealth and to inform both internal and external stakeholders. Examining costcenters, profit centers, and investment centers is often part of this kin..

What is the annual net cash cost : If a corporation issued $3,000,000 in bonds which pay 5% annual interest, what is the annual net cash cost of this borrowing if the income tax rate is 30%?

Preparing financial statements based on data : After reading and discussing how important it is for auditors to gather evidence to back up client claims, you are now introduced to accounting services where it is unnecessary to verify management's information.

One day the new ceo of the food service division : One day the new CEO of the Food Service Division (who happened to have a Marketing background) stopped by your office with a sheet of paper, handed it to you and said, "I just got back from this financial symposium and I heard a lot of terms an..

Offset the year-end inventory balance with a fund balance : Why do some accountants believe that it should offset the year-end inventory balance with a fund balance-non-spendable when no comparable fund balance is required for cash, taxes receivable, or most other assets?

How do you know that the information is secure from phishing : Computer system provides protection using the Bell-La Padula policy. How would a virus spread and how do you know that the information you type in is secure from phishing?

Capital investment decisions and the time value of money : Dominic Hunter, a second- year business student at University of Utah, wll graduate in two years with an acoounting major and a Spanish minor. Hunter is trying to decide where to work this summer. He has two choices: work full time for a bottl..

User Account

All Pages