When the CPA Is Not Independent with Respect to a Compilation

question 88

Multiple Choice

When the CPA is not independent with respect to a compilation client,the CPA must

• A)not accept the engagement.
• B)include a separate paragraph in the report stating the lack of independence.
• C)change the engagement to a review engagement.
• D)issue a disclaimer.

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Definitions:

Economic Contraction

Economic contraction is a period of economic decline marked by falling GDP, decreased spending, and increased unemployment.

Private-Owned Enterprises

Businesses that are fully owned by private individuals or corporations, as opposed to being owned by the government or public entities.

Communism

Communism is a political and economic ideology advocating for a classless society, where property and production means are owned and controlled by the community.