If an auditor performs a compilation but lacks independence, an additional paragraph must be added which states that: "We are not independent with respect to XYZ Company."

Question

Quizplus · Accepted Answer

This statement is correct as per the rules of the Generally Accepted Accounting Principles (GAAP) and the American Institute of Certified Public Accountants (AICPA). The lack of independence of the auditor must be disclosed in the compilation report to provide transparency to the users of the financial statements.

If an Auditor Performs a Compilation but Lacks Independence, an Additional