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Evaluate the following comments about compiled financial statements: When CPAs associate their name with compiled financial statements, their only responsibility is to the client and
Evaluate the following comments about compiled financial statements: "When CPAs associate their name with compiled financial statements, their only responsibility is to the client and that is limited to the proper summarization and presentation on the financial statements of information provided by the client. The opinion clearly states that the auditor has not conducted an audit and does not express an opinion on this fair presentation. If users rely on compiled financial statements, they do so at their own risk and should never be able to hold the CPA responsible for inadequate performance. Users should interpret the financial statements as if they had been prepared by management."(Select four comments that apply) A. The accountant is responsible for preparing the documentation of the limited procedures performed, evidence examined, and the conclusions reached. B. Users other than management are not prohibited from using compiled financial statements. They can expect the accountant to meet the standards set by the profession. C. The courts have not established the responsibilities of accountants for compilations. Therefore, even though responsibilities exist, the level has yet to be finalized. D. The accountant should always make inquiries to verify information provided by client personnel to understand the industry and look for unusual trends ?E. The report must list any additional analytical procedures performed if the accountant becomes concerned the information is incorrect or incomplete. F. The accountant is responsible for due care in the preparation of compiled financial statements. G. The report must be properly prepared and reflect the findings of the accountant
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