The Fact That a Client Has a Material Accounting Departure

question 35

Multiple Choice

The fact that a client has a material accounting departure for failure to follow ASPE would require the accountant to disclose that fact in a separate reservation paragraph when the accountant is performing

• A) a compilation.
• B) a review and an audit.
• C) either a compilation or a review.
• D) neither a compilation nor a review, only an audit.

---

Definitions:

Third-Party Donee Beneficiary

A person who benefits from a contract between two other parties, although they are not one of the contract's signatories.

Insurance Policy

A contract between an individual or entity and an insurance company, outlining the terms for premium payment in exchange for risk coverage.

Assignment

The process of handing over rights, assets, or responsibilities from one entity to another.

Delegation

The act of assigning responsibility or authority from one person or entity to another, typically from a higher to a lower authority.