During an Engagement to Review the Financial Statements of a Nonissuer

question 881

Multiple Choice

During an engagement to review the financial statements of a nonissuer an accountant becomes aware of a material departure from GAAP. If the accountant decides to modify the standard review report because management will not revise the financial statements, the accountant should:

• A) Express negative assurance on the accounting principles that do not conform with GAAP.
• B) Disclose the departure from GAAP in a separate paragraph of the report.
• C) Issue an adverse or an "except for" qualified opinion, depending on materiality.
• D) Express positive assurance on the accounting principles that conform with GAAP.

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Definitions:

High Blood Pressure

A condition where the force of the blood against the artery walls is too high, potentially leading to health problems such as heart disease.

High Blood Pressure

A condition in which the force of the blood against the artery walls is too high, often leading to health issues.

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Issues or diseases affecting the lungs, which can range from mild respiratory infections to chronic conditions such as asthma or COPD.

Heart Disease

A range of conditions affecting the heart, including blood vessel diseases, heart rhythm problems, and heart defects.