When a company’s financial statements in a review or compilation engagement contain a known material departure from GAAP, what should the accountant’s report do?

a. Make no mention of the departure in a compilation report because it contains an explicit disclaimer of opinion.

b. Express the adverse conclusion, “The accompanying financial statements are not presented in conformity with generally accepted accounting principles.”

c. Explain the departure as necessary to make the statements not misleading and then give the standard compilation report disclaimer.

d. Give the standard review report because it provides only negative assurance.