According to the Code of Professional Conduct,what Response Is Appropriate

question 55

Multiple Choice

According to the Code of Professional Conduct,what response is appropriate when an accountant,who is not independent,performs a compilation of financial statements?

• A) The accountant should indicate in the last sentence of the report that he/she is not independent.
• B) The accountant should withdraw from the engagement.
• C) The accountant should express a disclaimer opinion on the compilation.
• D) The accountant should express an adverse opinion on the compilation.

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Definitions:

Diversify

The strategy of allocating investments or resources across a variety of different areas to reduce risk.

504 Loan Program

A Small Business Administration program that provides long-term, fixed-rate financing to small businesses for major fixed assets, such as land and buildings.

Certified Development Company

A nonprofit organization sponsored either by private interests or by state or local governments.

Fixed Assets

Long-term tangible assets held for business use and not expected to be converted to cash in the upcoming fiscal year, such as buildings, machinery, and vehicles.