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 the review of financial statements provides limited assurance and does not involve issuing opinions like in an audit.

During a Review of the Financial Statements of a Nonpublic