An accountant has been engaged to prepare a nonpublic client's financial statements. While preparing the financial statements, the accountant finds a number of material misstatements related to journal entries. The client refuses to correct the misstatements. Which of the following is correct?
A. All regulatory agencies should immediately be notified.
B. A report with an adverse opinion should be issued.
C. The accountant should prepare the financial statements and present them using the misstated journal entries.
D. The accountant should withdraw from the engagement.
Answer: D
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