Which of the Following Is Not True Regarding an Engagement

question 1050

Multiple Choice

Which of the following is not true regarding an engagement to provide a written report on the application of accounting principles?

• A) An accountant is prohibited from providing a report on the application of accounting principles to a transaction not involving the facts and circumstances of a specific entity.
• B) The accountant's written report on the application of accounting principles should include an identification of the specific entity involved.
• C) An accountant is prohibited from providing a report on the application of accounting principles to a proposed future transaction involving the facts and circumstances of a specific entity.
• D) The accountant's written report on the application of accounting principles should include a paragraph restricting the use of the report.

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Definitions:

Government Regulations

The laws and rules established by governmental bodies intended to control or govern conduct within a certain area of activity.

Executive Branch

The branch of government responsible for enforcing laws and day-to-day management of the nation.

Legislative Branch

A division of government primarily responsible for making laws.

Privative Clause

A legal provision in a statute that limits the ability of courts to review decisions made by administrative bodies or officials.