When the practitioner is not independent with respect to a compilation client, the practitioner must:
A) not accept the engagement
B) include a separate paragraph in the report stating the lack of independence
C) change the engagement to a review engagement
D) issue a disclaimer

Question

Quizplus · Accepted Answer

Including a separate paragraph in the report stating the lack of independence is the correct action when a practitioner is not independent with respect to a compilation client. This ensures transparency and informs users of the financial statements about the practitioner's relationship with the client.

When the Practitioner Is Not Independent with Respect to a Compilation