Special Reporting Frameworks Practice Test

A nonissuer real estate partnership engages a CPA to review tax-basis financial statements intended for use by the partners and the partnership’s tax preparer. The financial statements appropriately describe the tax basis but omit a required disclosure about related-party transactions that is material. Which opinion should the accountant express in the review report?

A nonissuer construction company engages a CPA to audit cash-basis financial statements. In drafting the auditor’s report, the auditor plans to refer to the cash basis in the opinion paragraph but not include any additional paragraph highlighting the special-purpose framework note. What modification is required for the auditor's report?