Blue, CPA, Has Been Asked to Render an Opinion on the Application

question 206

Multiple Choice

Blue, CPA, has been asked to render an opinion on the application of accounting principles to a specific transaction by an entity that is audited by another CPA. Blue may accept this engagement, but should:

• A) Consult with the continuing CPA to obtain information relevant to the transaction.
• B) Report the engagement's findings to the entity's audit committee, the continuing CPA, and management.
• C) Disclaim any opinion that the hypothetical application of accounting principles conforms with generally accepted accounting principles.
• D) Notify the entity that the report is for the general use of all interested parties.

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Definitions:

Nonconformist

An individual who does not adhere to the prevailing ideas, rules, or practices of their society or group.

Stalking

Persisting in romantic, courtship, or other behaviors that frighten and harass the rejecter in a relationship.

Unwanted Emails

Emails that are unsolicited and often considered spam, which the recipient has not agreed to receive and wishes to avoid.

Unrequited Love

A type of love where one person's feelings are not reciprocated by the other.