When an accountant is not independent of an entity and is requested to perform a compilation of the entity's financial statements, the accountant
A) Is precluded from accepting the engagement.
B) May accept the engagement and need not disclose the lack of independence.
C) May accept the engagement and should disclose the lack of independence, but need not indicate the reason for the lack of independence.
D) May accept the engagement and should disclose both the lack of independence and the reason for the lack of independence.

Question

Quizplus · Accepted Answer

An accountant can perform a compilation even if not independent, but must disclose the lack of independence without stating the reason.

When an Accountant Is Not Independent of an Entity and Is