You Are a Public Accountant Retained by the Manager of a Cooperative

question 32

Multiple Choice

You are a public accountant retained by the manager of a cooperative retirement village to do "write-up work." You are expected to prepare unaudited financial statements with each page marked "unaudited" and accompanied by a disclaimer of opinion stating no audit was made.In performing the work,you discover that there are no invoices to support $25 000 of the manager's claimed disbursements.The manager informs you that all the disbursements are proper.What should you do?

• A)Submit the expected statements but omit $25 000 of unsupported disbursements.
• B)Include the unsupported disbursements in the statements since you are not expected to make an audit.
• C)Obtain from the manager a written statement that you informed him of the missing invoices and include his assurance that the disbursements are proper.
• D)Obtain further information about the $25 000 of unsupported items and withdraw if the situation is not satisfactorily resolved.

---

Definitions:

Organism's Behavior

The observable actions or reactions of living entities in response to external or internal stimuli.

Systematic Desensitization

A behavior therapy used to reduce phobic and anxiety responses through gradual exposure to the feared stimulus, paired with relaxation exercises.

Complex Behaviors

Actions or reactions that involve a combination of skills and attributes such as emotional, cognitive, and social components, resulting in intricate or complicated responses to stimuli.

Flooding

A therapeutic technique used in behavioral therapy to treat phobias and anxiety, involving prolonged exposure to a feared object or situation until the fear response is extinguished.