During a Review of the Financial Statements of a Nonpublic

question 74

Multiple Choice

During a review of the financial statements of a nonpublic entity, the CPA finds that the financial statements contain a material departure from generally accepted accounting principles. If management refuses to correct the problem, the CPA should

• A) Disclose the departure in a separate paragraph of the report.
• B) Issue an adverse opinion.
• C) Attach a footnote explaining the effects of the departure.
• D) Issue a compilation report.

---

Definitions:

Sensitivity Test

A laboratory test used to determine the effectiveness of antibiotics or other antimicrobial agents against bacteria or other pathogens.

First Morning Urine

The first urination after waking up, often used in medical testing as it is more concentrated and can provide more accurate results.

Random Urine

A urine sample taken at any given time, without any prior preparation, used for general or specific medical testing.

Specimen

A sample or part taken from a living organism or the environment for the purpose of scientific examination.