When an independent CPA assists in preparing the financial statements of a publicly held entity, but has not audited or reviewed them, the CPA should issue a disclaimer of opinion. In such situations, the CPA has no responsibility to apply any procedures beyond:

Question

Quizplus · Accepted Answer

Choice "D" is correct. When an independent CPA assists in preparing the FS of a publicly held entity, but has not "audited" or "reviewed" them, the CPA should issue a disclaimer of opinion and has only the responsibility to read the FS for obvious material misstatements. Choice "A" is incorrect. A disclaimer does not require ascertaining whether the FS are in conformity with GAAP. Choice "B" is incorrect. A disclaimer does not require ascertaining whether management has elected to omit substantially all required disclosures. Choice "C" is incorrect. A disclaimer of opinion does not require ascertaining whether or not the internal control structure is being relied upon.

When an Independent CPA Assists in Preparing the Financial Statements