If compiled or reviewed financial statements contain a departure from GAAP, the accountant can conclude that a modification of the standard report is appropriate. When such a modification is made, which of the following is true? B. Disclosure of the effects of the departure is appropriate and the accountant should extend his A. or her procedures to determine the effects on the financial statements. Disclosure of the effects of the departure is appropriate if management has determined the effects or they are known as a result of the accountant's procedures. Disclosure of the effects of the departure is only appropriate in a review engagement as the scope of a compilation is not sufficient to arrive at the effects. D. Disclosure of the effects of the departure is required. Submit Answers