Jones Retailing, a Nonpublic Entity, Has Asked Winters, CPA, to Compile

question 42

Multiple Choice

Jones Retailing, a nonpublic entity, has asked Winters, CPA, to compile financial statements that omit substantially all disclosures required by generally accepted accounting principles. Winters may compile such financial statements, provided the:

• A)reason for omitting the disclosures is explained in the engagement letter and acknowledged in the management representation letter.
• B)financial statements are prepared on a comprehensive basis of accounting other than generally accepted accounting principles.
• C)distribution of the financial statements is restricted to internal use only.
• D)omission is not undertaken to mislead the users of the financial statements and is properly disclosed in the accountant's report.

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Definitions:

Isolationist Policy

A foreign policy stance wherein a country seeks to minimize its involvement in international affairs and focus primarily on its own development.

New Deal

A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in response to the Great Depression.

Internationalism

A political principle which advocates for greater political or economic cooperation among nations and peoples across the globe.

Rationing

The controlled distribution of scarce resources, goods, or services, often implemented during shortages to ensure fair and equitable access.