During a review of the financial statements of a nonpublic entity,the CPA finds that the financial statements contain a material departure from generally accepted accounting principles.If management refuses to correct the financial statement presentations,the CPA should:
A)Disclose the departure in a separate paragraph of the report.
B)Issue an adverse opinion.
C)Attach a note explaining the effects of the departure.
D)Issue a compilation report.

Question

Quizplus · Accepted Answer

If the financial statements contain a material departure from GAAP and management refuses to correct it, the CPA should disclose the departure in a separate paragraph of the report, explaining the nature and effects of the departure.

During a Review of the Financial Statements of a Nonpublic