When an Independent CPA Assists in Preparing the Financial Statements

question 155

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

---

Definitions:

Congress

The national legislative body of the United States, composed of the Senate and the House of Representatives.

Constituents

The residents or voters within a district represented by an elected official, to whom the official owes their duties.

Legislator

An elected official who is responsible for making or enacting laws within a legislative body, such as a parliament or congress.

Representatives

Elected officials in the legislative branch of government tasked with making and enacting laws, typically on behalf of a specific geographic area or constituency.