When the CPA Is Not Independent with Respect to a Compilation

question 34

Multiple Choice

When the CPA is not independent with respect to a compilation client, what should the CPA do?

• A) The CPA must not accept the engagement.
• B) The CPA must include a separate paragraph in the report stating the lack of independence.
• C) The CPA must change the engagement to a review engagement.
• D) The CPA must issue a disclaimer.

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Definitions:

Consumer Demand

The desire and willingness of consumers to purchase goods or services at given prices, which can influence the production and pricing strategies of businesses.

John Kenneth Galbraith

An influential Canadian-American economist known for his books on the modern economy and critiques of private sector production.

Central Hudson Test

A second definition for the four-part analysis used by courts to assess the constitutionality of laws regulating commercial speech.

Crazy Horse

A Native American war leader of the Oglala Lakota, known for his courage and leadership in resistance against the U.S. government's policies towards Native Americans.