Jones Retailing, a Nonissuer, Has Asked Winters, CPA, to Compile

question 638

Multiple Choice

Jones Retailing, a nonissuer, has asked Winters, CPA, to compile financial statements that omit substantially all disclosures required by generally accepted accounting principles. Winters may compile such financial statements provided the:

• A) Reason for omitting the disclosures is explained in the engagement letter and acknowledged in the management representation letter.
• B) Financial statements are prepared on a comprehensive basis of accounting other than generally accepted accounting principles.
• C) Use of the financial statements is restricted to internal use only.
• D) Omission is not undertaken to mislead the users of the financial statements and is properly disclosed in the accountant's report.

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Definitions:

Social Treatments

Refers to therapeutic and support interventions in a social setting, aimed at improving mental health and social functioning.

Sexual Dysfunction

A difficulty that arises at any point within the sexual response cycle, inhibiting the person or couple's ability to derive pleasure from sexual activities.

Tardive Dyskinesia

A side effect of certain antipsychotic medications, characterized by involuntary, repetitive body movements.

Delusions

Delusions are false beliefs held with strong conviction despite superior evidence to the contrary, often due to a psychological disorder.