Steve White, CPA, has completed the compilation of the financial statements of the Elbow Macaroni Factory, a nonpublic entity, and is now considering the form of report that he should issue.

a. Discuss the general form of a compilation report.

b. If White performed additional procedures such as a review of the bank reconciliations and tax returns and a test of inventory pricing, how would the general form of the compilation report be modified? Why?

c. What factors should White consider before issuing his compilation report if the owner of the Elbow Macaroni Factory requests that substantially all disclosures required by generally accepted accounting principles be omitted?

d. How would White's compilation report be affected if he has not yet been paid for compiling the prior year financial statements of the Elbow Macaroni Factory?

e. How would White's compilation report be affected if he determines that the macaroni tax credit was not considered in computing the company's tax liability and that the effect on the financial statements is material?

f. What action should White take if he believes that modification of his report is not adequate to indicate the deficiencies in the financial statements taken as a whole?