To compile financial statements, the accountant should possess a general understanding of which of the following? A. The accounting basis on which the financial statements are to be presented B. The history of the company including its founders and their objectives in organizing the business C. The markets served by the client in the distribution of its product or services. D. The state of the current economy. An uncertainty is best and most completely defined as which of the following? A. A matter of material significance that might be positive and might be negative to the company's operations A matter that is expected to be resolved at a future date when sufficient information becomes B. available C. A matter that is expected to be resolved in one year or an operating period, whichever is longer D. A significant, unresolved management decision An accountant was engaged to perform a review for ABC Company, a nonissuer. During the performance of the engagement, the accountant found it necessary to confirm the accounts receivable and observe the taking of the Inventory. Under these circumstances, it appears that the accountant should issue which of the following reports? A. Audit report with a separate paragraph B. Review report as originally intended C. Review report with a separate paragraph. D. Review report with positive assurance on accounts receivable and inventory To be classified as a predecessor accountant, an individual must have been which of the following? A. Dismissed by the client for failure to report correctly on prior financial statements that were either compiled or reviewed. Engaged to compile or review the financial statements of the entity for the most recent period B. C. Engaged to do accounting work for a client in the prior period. D. Independent with respect to the entity involved. DEVELL est answer In deciding the extent and type of inquiries to use in a review engagement, the accountant should consider all except which of the following? A. Accounting personnel qualifications for the job done. B. Control risk based on the study and evaluation of internal control C. Deficiencies in the accounting system that affect statements, D. Nature and significance of the item being reviewed