Which of the following best describes the responsibility of the CPA in performing compilation services for a company?
1. The CPA has to satisfy only himself or herself that the financial statements were prepared in conformity with accounting standards.
2. The CPA must understand the client's business and accounting methods and read the financial statements for reasonableness.
3. The CPA should obtain an understanding of internal control and perform tests of controls.
4. The CPA is relieved of any responsibility to third parties.