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46) During a review of the financial statements of a nonpublic

Question : 46) During a review of the financial statements of a nonpublic : 2134869

46) During a review of the financial statements of a nonpublic entity, an accountant becomes aware of inadequate disclosure that is material to the financial statements. If management refuses to correct the financial statement presentations, the accountant should:

A) issue an adverse opinion.

B) issue an "except for" qualified opinion.

C) disclose this departure from generally accepted accounting principles in a separate paragraph of the report.

D) express only limited assurance on the financial statement presentations.

47) Statements on Standards for Accounting and Review Services establish standards and procedures for which of the following engagements?

A) Assisting in adjusting the books of account for a partnership.

B) Examining prospective financial statements.

C) Processing financial data for clients of other accounting firms.

D) Compiling an individual's personal financial statement to be used to obtain a mortgage.

48) IIA Standards include:

A) attribute standards.

B) performance standards.

C) interpretations.

D) both attribute standards and performance standards.

49) An accountant is required to comply with the provisions of Statements on Standards for Accounting and Review Services when:

I. Typing client-prepared financial statements, without modification, as an accommodation to a client.

II. Preparing standard monthly journal entries for depreciation and expiration of prepaid expenses.

A) I only.

B) II only.

C) Both I and II.

D) Neither I nor II.

50) In a review engagement, the accountant must make all of the following inquiries except those to:

A) Identify subsequent events having a material effect on the statements.

B) Understand internal controls.

C) Identify actions taken at stockholders' meetings.

D) Ascertain whether statements are in accordance with GAAP.

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