When Unaudited Financial Statements Prepared on a Basis That Does

question 26

Multiple Choice

When unaudited financial statements prepared on a basis that does not conform to GAAP are disseminated by a CPA,the CPA should:

• A) Directly contact intended recipients of these statements to inform them about the nonconformity with GAAP
• B) Mark the statements as "Unaudited" and state that they are "Not prepared in accordance with GAAP"
• C) Not be involved in the physical or digital transmission of these statements
• D) Not sign any reports or statements indicating her status as a CPA

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Definitions:

Mere-exposure Effect

A psychological phenomenon where people tend to develop a preference for things merely because they are familiar with them.

Proximity

The physical or psychological closeness or distance between people, objects, or concepts, affecting relationships and interactions.

Familiarity

refers to the level of knowledge or recognition that an individual has about a certain concept, object, or person, often resulting from prior experience or exposure.

Self-fulfilling Prophecy

A belief that leads to its own fulfillment due to the behavior of the believer or others.