For each of the following independent situations, state whether the CPA has violated generally accepted auditing standards and/or the CPA-Canada Code of Ethical Principles and Rules of Conduct or Independence Standard AND explain your reasoning.

Yang, CGA, was approached by a potential small business client who asked him if he could compile the companys financial statements from the initial transaction records, making whatever adjustments he considered necessary to produce financial statements that could be filed with the companys tax returns. Yang accepted the engagement and prepared a balance sheet and income statement, without notes, to which he appended an unmodified "Notice to Reader.