Kramer,CPA consulted an independent appraiser regarding the valuation of fine art for a not-for-profit museum.Consultation with a specialist in this case would
A) Be considered as exercising proper due care.
B) Be considered a failure to follow GAAS because Kramer should have known how to value fine art before accepting the engagement.
C) Not be considered a violation of GAAS because GAAS does not apply to not-for-profit entities.
D) None of the above.

Question

Quizplus · Accepted Answer

Consulting with a specialist in a specific area, such as fine art valuation, is a form of exercising proper due care. It shows that the CPA is taking reasonable steps to ensure the accuracy and reliability of their work, which is a fundamental principle of GAAS. It is not a violation of GAAS to consult with a specialist, even for a not-for-profit entity.

Kramer,CPA Consulted an Independent Appraiser Regarding the Valuation of Fine