A CPA who is not independent and is associated with financial statements should disclaim an opinion with respect to those financial statements.The disclaimer should
A) Clearly state the specific reasons for lack of independence.
B) Not mention any reason for the disclaimer other than that the CPA was unable to conduct the examination in accordance with generally accepted auditing standards.
C) Not describe the reason for lack of independence but should state specifically that the CPA is not independent.
D) Include a middle paragraph clearly describing the CPA's association with the client and explaining why the CPA was unable to gather sufficient appropriate evidential matter to warrant the expression of an opinion.

Question

Quizplus · Accepted Answer

The disclaimer should not only state that the CPA is not independent, but it should also clearly state the specific reason for lack of independence. This is done in order to provide transparency to the users of financial statements. Option A is too specific and may not be necessary, whereas option B is not specific enough. Option D includes additional information that may not be required for a disclaimer of opinion.

A CPA Who Is Not Independent and Is Associated with Financial