A CPA firm can issue a compilation report even if it is not independent with respect to the client.

Question

Quizplus · Accepted Answer

According to the AICPA's Statements on Standards for Accounting and Review Services (SSARS), a compilation report can be issued by a CPA firm even if it is not independent with respect to the client, as long as the lack of independence is disclosed in the report. However, if the CPA firm identifies any material modifications that need to be made to the financial statements in order for them to be in accordance with the applicable financial reporting framework, the CPA firm must either bring these modifications to the attention of management or withdraw from the engagement.

A CPA Firm Can Issue a Compilation Report Even If