Winkelberg,a CPA,has Been Retained to Prepare Unaudited Financial Statements for a Company,on

question 17

Multiple Choice

Winkelberg,a CPA,has been retained to prepare unaudited financial statements for a company,on an income tax reporting basis,for a privately-held company owned by her best friend,Stinkelberg.WInkelberg has a professional obligation to:

• A) Withdraw from this engagement because of her friendship with Stinkelberg
• B) Withdraw from this engagement because of the basis on which these financial statements are presented
• C) Use due care in preparing these statements
• D) Inform her client that this basis of reporting violates SEC filing requirements, but she does not necessarily have a duty to withdraw from this engagement

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Definitions:

Participants

Individuals or groups actively involved in a process, event, or activity, contributing or partaking in some capacity.

Nonverbal Communication

The transfer of information through body movements, facial expressions, and other physical gestures without the use of words.

Coded Language

Language that uses words or phrases with hidden meanings known only to a specific group, often to conceal the true message.

Ambiguity

A situation or statement that has more than one possible interpretation or meaning, often leading to confusion or misunderstanding.