When an Accountant Is Asked to Compile Financial Statements That

question 9

Multiple Choice

When an accountant is asked to compile financial statements that omit substantially all of the required disclosures, which of the following actions is appropriate?

• A) The CPA cannot accept the engagement.
• B) The CPA may accept the engagement.
• C) The CPA may accept the engagement if the CPA believes the omission is not undertaken to mislead users.
• D) The CPA must express an adverse opinion.

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Definitions:

Human Beings

Refers to Homo sapiens, the species of bipedal primates to which all modern human beings belong, characterized by a capacity for language and abstract reasoning.

Learned Helplessness

A psychological condition where an individual expects failure due to previous experiences of inability to control outcomes, affecting motivation and behavior.

Contingency Blocking

A learning phenomenon where the association between a stimulus and a response is hindered by the presence of a more dominant or previously learned stimulus-response association.

Biofeedback

A technique that trains individuals to improve their health by controlling certain bodily processes that normally occur involuntarily, such as heart rate, blood pressure, muscle tension, and skin temperature.