Craig Marks, CPA Performs an Audit of Treasure, Inc

question 70

Multiple Choice

Craig Marks, CPA performs an audit of Treasure, Inc., which keeps its financial statements on the tax basis of accounting. Craig is aware of this fact and audits the financial statements on the criteria of the tax basis. What type of engagement is this?

• A) This engagement is not permitted by the AICPA.
• B) This engagement is an audit that will result in the issuance of a special report.
• C) This engagement is a compilation.
• D) This engagement is only performed by tax accountants who do not provide attest services.

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Definitions:

Humane

Characterized by compassion, kindness, and the avoidance of harm or cruelty to others, including animals.

Rational Approach

A method or strategy based on logic and reasoning, typically aimed at solving problems or making decisions.

Unpredictable

Not able to be predicted; capable of changing or varying without apparent reason or pattern.

Dangerous

Refers to something that is likely to cause harm or injury.