In an Engagement Relating to a Nonpublic Company, Conditions Exist

question 32

Multiple Choice

In an engagement relating to a nonpublic company, conditions exist that result in a material deviation from the criteria against which the subject matter was evaluated during an examination performed following the attestation standards. The CPA's conclusion may be on: $$\begin{array} { | c | c | c | } \hline & \begin{array} { c } \text { Subject } \\\text { Matter }\end{array} & \begin{array} { c } \text { written } \\\text { Assertion }\end{array} \\\hline \text { A. } & \text { Yes } & \text { Yes } \\\hline \text { B. } & \text { Yes } & \text { No } \\\hline \text { C. } & \text { No } & \text { Yes } \\\hline \text { D. } & \text { No } & \text { No } \\\hline\end{array}$$

• A) Option A
• B) Option B
• C) Option C
• D) Option D

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Definitions:

Disintermediation

The removal of intermediaries in the supply chain, allowing producers to sell directly to consumers.

Delivery Of Products

The process of transporting goods from a seller to the purchaser’s location or making them available for collection.

Intermediaries

Entities that act as middlemen in the distribution chain between producers and consumers or between different businesses.

Air Transportation

The conveyance of people or goods from one place to another using aircraft.