Choice a is incorrect the report should state that

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Unformatted text preview: eport on the application of accounting principles to a specific transaction. The CPA's report should include a statement that: a. The engagement was performed in accordance with Statements on Standards for Accounting and Review Services. b. Responsibility for the proper accounting treatment rests with the preparers of the financial statements. c. The evaluation of the application of accounting principles is hypothetical and may not be used for opinion-shopping. d. The guidance is provided for management's use only and may not be communicated to the prior or continuing auditor. CPA-02714 Choice "b" is correct. When reporting on the application of accounting principles to a specific transaction, the CPA should include in his or her report a statement that the preparers of the financial statements, who should consult with their continuing accountants, bear the ultimate responsibility for proper accounting treatment. Choice "a" is incorrect. The report should state that the engagement was performed in accordance...
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This note was uploaded on 06/14/2013 for the course ACCOUNTING audit cpa taught by Professor Becker during the Fall '12 term at Keller Graduate School of Management.

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