During a Review of the Financial Statements of a Nonpublic

question 2

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 financial statement presentations,the CPA should:

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

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Definitions:

Organogenesis

The phase during embryonic development where organs form from the three germ layers, setting the foundation for functional body systems.

Embryonic Development

The process of development of a new organism from a single-celled zygote to a complex structure composed of multiple cells and tissues.

Induction

A process in developmental biology where one cell or tissue type influences the development of another cell or tissue type, leading to a specific developmental pathway or pattern.

Organogenesis

The process during embryonic development in which organs are formed from the three germ layers.