When unaudited financial statements prepared on a basis that does not conform to GAAP are disseminated by a CPA,the CPA should:

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The best option in this scenario is for the CPA to mark the statements as "Unaudited" and state that they are "Not prepared in accordance with GAAP." This provides transparency to the recipients of the statements about the basis on which they were prepared. The other options, such as directly contacting recipients or not being involved in the transmission, can also be helpful measures, but marking the statements is the most crucial action for the CPA to take. The CPA can sign the statements or reports, but should ensure that they clearly state the nonconformity with GAAP.

When Unaudited Financial Statements Prepared on a Basis That Does