In connection with a proposal to obtain a new client, an accountant in public practice is asked to prepare a written report on the requirements of an applicable financial reporting framework to a specific transaction. The accountant's report should include a statement that

A. Any difference in the facts, circumstances, or assumptions presented may change the report. B. The engagement was performed in accordance with Statements on Standards for Consulting Services. C. The guidance provided is for management use only and may not be communicated to the prior or continuing auditors. D. Nothing came to the accountant's attention that caused the accountant to believe that the accounting principles violated GAAP.

Question

Jackie

Business

22 October, 08:56

In connection with a proposal to obtain a new client, an accountant in public practice is asked to prepare a written report on the requirements of an applicable financial reporting framework to a specific transaction. The accountant's report should include a statement that

A. Any difference in the facts, circumstances, or assumptions presented may change the report. B. The engagement was performed in accordance with Statements on Standards for Consulting Services. C. The guidance provided is for management use only and may not be communicated to the prior or continuing auditors. D. Nothing came to the accountant's attention that caused the accountant to believe that the accounting principles violated GAAP.

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Answers (1)

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Jaylen George · Answer 1

Answer: the correct answer is A. Any difference in the facts, circumstances, or assumptions presented may change the report.

Explanation:

An accountant's report on the application of accounting principles to a specific transaction should include: 1) a statement that the engagement was conducted in accordance with applicable AICPA standards, 2) a description of the transaction and the accounting principles to be applied, 3) a statement indicating that responsibility for proper accounting treatment rests with the preparers of the financial statements, and 4) a statement that any difference in the facts, circumstances, or assumptions may change the report. (AU 625)