Q1. Which of the following procedures would most likely be performed during an engagement to compile the financial statements of a nonissuer?

a Read the financial statements and consider whether they are appropriate in form and free from obvious material errors

b Perform inquiry and analytical procedures

c Obtain a representation letter from management

d Send accounts receivable confirmations

Q2. Which of the following procedures would most likely be performed during the engagement to review the annual financial statements of a nonissuer?

a Observation of inventory

b Confirmation of notes receivable

c Communication with the predecessor accountant

c Comparison of the current financial statements with prior period financial statements

Q3. Which of the following is a prospective financial statement for general use upon which an accountant may appropriately report?

a Financial projection

b Partial presentation

c Pro forma financial statement

d Financial forecast