During a review of the financial statements of a nonpublic entity, an accountant becomes aware of inadequate disclosure that is material to the financial statements. If management refuses to correct the financial statement presentations, the accountant should
A) Issue an adverse opinion.
B) Issue an "except for" qualified opinion.
C) Disclose this departure from generally accepted accounting principles in a separate paragraph of the report.
D) Express only limited assurance on the financial statement presentations.

Question

Quizplus · Accepted Answer

The accountant should disclose the departure from generally accepted accounting principles in a separate paragraph of the report, as they are not providing an audit opinion but rather a review, which involves limited assurance.

During a Review of the Financial Statements of a Nonpublic