According to the Code of Professional Conduct,what response is appropriate when an accountant,who is not independent,performs a compilation of financial statements?
A) The accountant should indicate in the last sentence of the report that he/she is not independent.
B) The accountant should withdraw from the engagement.
C) The accountant should express a disclaimer opinion on the compilation.
D) The accountant should express an adverse opinion on the compilation.

Question

Quizplus · Accepted Answer

According to the Code of Professional Conduct, if an accountant who is not independent performs a compilation of financial statements, the last sentence of the report should indicate that he/she is not independent. The other options are not appropriate in this situation. Withdrawing from the engagement would not be necessary if the accountant discloses the lack of independence, and expressing a disclaimer or adverse opinion would not be relevant because there is no disagreement with the information presented in the financial statements.

According to the Code of Professional Conduct,what Response Is Appropriate