According to the Statements on Standards for Accounting and Review Services, what response is appropriate when an accountant, who is not independent, performs a compilation of financial statements?
A)The accountant should state in the report that he/she is not independent.
B)The accountant should withdraw from the engagement.
C)The accountant should express a disclaimer opinion on the compilation.
D)The accountant should express an adverse opinion on the compilation.

Question

Quizplus · Accepted Answer

According to SSARS, if the accountant is not independent and performs a compilation, the accountant should state in the report that he/she is not independent. This disclosure helps the user of financial statements to assess the limitations of the statement, and the level of reliance that can be placed upon it. Withdrawal from the engagement and expressing a disclaimer or adverse opinion on compilation is not necessary in this situation.