A CPA Who Is Not Independent and Is Associated with Financial

question 14

Multiple Choice

A CPA who is not independent and is associated with financial statements should disclaim an opinion with respect to those financial statements. The disclaimer should:

• A) clearly state the specific reasons for lack of independence.
• B) not mention any reason for the disclaimer other than that the CPA was unable to conduct the examination in accordance with generally accepted auditing standards.
• C) not describe the reason for lack of independence but should state specifically that the CPA is not independent.
• D) include a middle paragraph clearly describing the CPA's association with the client and explaining why the CPA was unable to gather sufficient competent evidential matter to warrant the expression of an opinion.

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Definitions:

Nonprofit Organizations

Organizations that operate for purposes other than making a profit, often focusing on social, educational, or charitable activities.

Metrics

Quantitative measures used to track and assess the status of a specific process, performance, or outcome.

Credence Properties

Characteristics of a product or service that are difficult or impossible for consumers to evaluate even after purchase and use, such as the expertise of a medical procedure.

Experience Properties

Characteristics of a product or service that can only be ascertained through direct use or experience.