When an Accountant Is Not Independent of an Entity and Is

question 31

Multiple Choice

When an accountant is not independent of an entity and is requested to perform a compilation of the entity's financial statements, the accountant:

• A)is precluded from accepting the engagement.
• B)may accept the engagement and need not disclose the lack of independence.
• C)may accept the engagement, should disclose the lack of independence, and may indicate the reason for the lack of independence.
• D)may accept the engagement and must disclose both the lack of independence and the reason for the lack of independence.

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Definitions:

American Medical Association

A professional association for physicians in the United States aimed at advancing public health and ethical standards in the medical profession.

American Hospital Formulary

A comprehensive listing of medications and related information used by hospitals, aimed at promoting effective and safe use of drugs.

Classification Of Drugs

The classification of drugs involves organizing them into categories based on their mode of action, chemical structure, or therapeutic and pharmacological effects.

HCPCS Level II

Healthcare Common Procedure Coding System Level II, a standardized coding system used for billing a wide range of services and supplies not covered by the traditional CPT codes.