When an accountant is not independent of an entity and is requested to perform a compilation of the entity's financial statements, the accountant:
A)is precluded from accepting the engagement.
B)may accept the engagement and need not disclose the lack of independence.
C)may accept the engagement, should disclose the lack of independence, and may indicate the reason for the lack of independence.
D)may accept the engagement and must disclose both the lack of independence and the reason for the lack of independence.

Question

Quizplus · Accepted Answer

An accountant can accept a compilation engagement even if they are not independent of the entity, but they must disclose their lack of independence in the compilation report. Disclosing the reason for the lack of independence is optional, not mandatory.

When an Accountant Is Not Independent of an Entity and Is