When the CPA is not independent with respect to a compilation client,the CPA must
A)not accept the engagement.
B)include a separate paragraph in the report stating the lack of independence.
C)change the engagement to a review engagement.
D)issue a disclaimer.

Question

Quizplus · Accepted Answer

If the CPA is not independent with respect to a compilation client, the CPA should include a separate paragraph in the report stating the lack of independence. The AICPA's Compilation and Review Standards state that if the accountant is not independent with respect to the client, the accountant should disclose the lack of independence in a separate paragraph of the report. The other options, such as not accepting the engagement, changing the engagement to a review engagement, or issuing a disclaimer, may not be necessary or appropriate depending on the circumstances.

When the CPA Is Not Independent with Respect to a Compilation