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:

Stages of Change Model

A theoretical model describing the phases individuals go through in altering behavior, including precontemplation, contemplation, preparation, action, and maintenance.

Theoretical Model

A systematic representation of an idea or concept that explains phenomena and predicts future outcomes.

Major Criticisms

Substantial or significant objections or disapprovals voiced against ideas, actions, or entities.

Predictor

A variable or factor that can be used to forecast or anticipate the outcome of a future event or trend.