When an Independent CPA Assists in Preparing the Financial Statements

question 197

Multiple Choice

When an independent CPA assists in preparing the financial statements of a publicly held entity, but has not audited or reviewed them, the CPA should issue a disclaimer of opinion. In such situations, the CPA has no responsibility to apply any procedures beyond:

• A) Documenting that internal control is not being relied on.
• B) Reading the financial statements for obvious material misstatements.
• C) Ascertaining whether the financial statements are in conformity with GAAP.
• D) Determining whether management has elected to omit substantially all required disclosures.

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