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:

Situational Factors

External circumstances or conditions that influence an individual's behavior or decisions at a given time, without being a reflection of inherent personality traits.

Eating Habits

The patterns and preferences related to food consumption that are developed over time, influenced by cultural, social, and personal factors.

Interpersonal Trust

The belief in the reliability, truth, ability, or strength of others within personal or professional relationships.

Minimal Goal Level

The lowest standard or objective that an individual aims to achieve within a specific timeframe or context.