In a review service where the client has failed to follow applicable accounting standards, the accountant is
A) not required to determine the effect of a departure if management has not done so, but that fact must be disclosed in the report.
B) required to determine the effect of a departure if management has not done so, and that fact must be disclosed in the report.
C) not required to determine the effect of a departure if management has not done so, and that fact need not be disclosed in the report.
D) required to determine the effect of a departure if management has not done so, and that fact need not be disclosed in the report.

Question

Quizplus · Accepted Answer

In a review service, the accountant is not required to determine the effect of a departure from applicable accounting standards if management has not done so. However, it is important that this fact is disclosed in the accountant's report to ensure transparency and to inform the users of the financial statements about the limitation in the scope of the review.

In a Review Service Where the Client Has Failed to Follow