If an accountant is engaged to compile the financial statements of a private entity and the statements omit substantially all disclosures required by GAAP, which of the following alternatives is correct?
A) If the accountant concludes that the omissions result in misleading financial
statements and the matter cannot be resolved, the accountant should withdraw
from the engagement.
B) The report should be amended to state that the financial statements have been
prepared in accordance with a comprehensive basis of accounting other than
GAAP.
C) The report should indicate that the statements are special-purpose financial
statements that are not comparable to those of prior periods.
D) The report should be amended to state that the financial statements have not been
compiled in accordance with standards for compilation and review engagements.
A) If the accountant concludes that the omissions result in misleading financial
statements and the matter cannot be resolved, the accountant should withdraw
from the engagement.
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