In a Review Service Where the Client Has Failed to Follow

question 80

Multiple Choice

In a review service where the client has failed to follow applicable accounting standards, the accountant is

• A) not required to determine the effect of a departure if management has not done so, but that fact must be disclosed in the report.
• B) required to determine the effect of a departure if management has not done so, and that fact must be disclosed in the report.
• C) not required to determine the effect of a departure if management has not done so, and that fact need not be disclosed in the report.
• D) required to determine the effect of a departure if management has not done so, and that fact need not be disclosed in the report.

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Definitions:

Smaller Scope

A reduced or more focused range of work, objectives, or activities within a project or initiative.

Uncertainty Or Risk

Refers to situations where the outcome of an event is unknown and can impact objectives negatively or positively.

Penalty Clause

A contractual provision that imposes a penalty on a party for not meeting certain conditions or deadlines.

Performed According

Actions or tasks executed in compliance with specified standards, requirements, or agreements.