Review And Compilation Practice Test

An accountant performs a compilation engagement for a nonissuer and is asked to omit the accountant’s report entirely because management wants to provide the financial statements to a lender “without extra pages.” Under which circumstance would the practitioner need to communicate specific findings?

An accountant is engaged to perform a compilation engagement for a nonissuer retailer on financial statements prepared using a special purpose framework. Management refuses to include substantially all disclosures because “the bank only wants the numbers,” and the omission is not intended to mislead. Which report modification is appropriate given the circumstances?