When an accountant is asked to compile financial statements that omit substantially all of the required disclosures, which of the following actions is appropriate?
A) The CPA cannot accept the engagement.
B) The CPA may accept the engagement.
C) The CPA may accept the engagement if the CPA believes the omission is not undertaken to mislead users.
D) The CPA must express an adverse opinion.

Question

Quizplus · Accepted Answer

The CPA may accept the engagement if the CPA believes the omission is not undertaken to mislead users. However, the CPA must state that the financial statements are not in accordance with generally accepted accounting principles (GAAP) and disclose in the report that the required disclosures have been omitted.

When an Accountant Is Asked to Compile Financial Statements That