An accountant has been engaged to review a nonissuer's financial statements that contain several departures from GAAP. If the financial statements are not revised and modification of the standard review report is not adequate to indicate the deficiencies, the accountant should:
A) Withdraw from the engagement and provide no further services concerning these financial statements.
B) Inform management that the engagement can proceed only if the accountant's report is restricted to internal use.
C) Determine the effects of the departures from GAAP and issue a special report on the financial statements.
D) Issue a modified review report provided the entity agrees that the financial statements will not be used to obtain credit.
Correct Answer:
Verified
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