When an Accountant Is Not Independent of an Entity and Is

question 35

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 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.

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Definitions:

Physical Illness

A condition affecting the body’s normal functions, often characterized by specific symptoms and signs.

Stress and Health

The study of how stress affects physical and mental wellbeing, including its role in various diseases and conditions.

Immune System Activity

The processes and actions of the immune system in defending the body against pathogens, including bacteria, viruses, and foreign bodies.

Crowding

A subjective feeling of being in an overly dense space, which can influence stress levels, behavior, and social interactions.