When an Accountant Is Not Independent of a Client and Is

question 58

Multiple Choice

When an accountant is not independent of a client and is requested to perform a compilation of the client'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 and should disclose the lack of independence, but need not indicate the reason for the lack of independence.
• D) May accept the engagement and should disclose both the lack of independence and the reason for the lack of independence.

---

Definitions:

Master Production Schedule

A detailed plan that outlines what is to be produced, how much, and when, guiding manufacturing operations.

Subassemblies

Parts that are assembled separately but designed to be used as part of a larger assembly.

Final Products

The completed goods ready for sale or distribution after undergoing all stages of the manufacturing process.

Master Production Schedule

A detailed plan that outlines what a manufacturing facility will produce, in what quantities, and when, to meet anticipated demand.