If Financial Statements Contain a Departure from GAAP,a CPA Is

question 13

Multiple Choice

If financial statements contain a departure from GAAP,a CPA is:

• A) Not allowed to issue an audit report concerning the statements
• B) Required to disclose an estimate of the approximate financial impact that the departure from GAAP had on the financial statements
• C) Allowed to complete the current-year engagement only if the financial statements are utilized by company management for internal decision-making
• D) Required to withdraw from future-year engagements, but may complete the current-year assignment as long as the departure from GAAP is adequately disclosed

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Definitions:

Sales Approach

A method or strategy used by salespeople to introduce and sell a product or service to potential customers.

Reciprocity

An agreement whereby a person or organization buys a product if the person or organization selling the product also buys a product from the first party.

Preconceived Answers

Responses or conclusions formed in advance of obtaining complete information or experience, often based on assumptions.

Pocket Planner

A pocket planner is a compact, portable calendar or agenda used for organizing appointments, tasks, and notes, typically small enough to fit in a pocket or handbag.