If compiled financial statements presented in conformity with the cash receipts and disbursements basis of accounting do not disclose the basis of accounting used,the accountant should:
A)Disclose the basis in the notes to the financial statements.
B)Clearly label each page "Unaudited."
C)Disclose the basis of accounting in the accountant's report.
D)Recompile the financial statements using generally accepted accounting principles.

Question

Quizplus · Accepted Answer

The accountant should disclose the basis of accounting in the accountant's report to ensure that users of the financial statements are aware of the basis on which the financial statements have been prepared. This is important for proper understanding and interpretation of the financial information presented.

If Compiled Financial Statements Presented in Conformity with the Cash