ndal J. Elder, Mark Beasley - Auditing and Assurance Services ign Window Help Is Alvin A. Arens, Ran... X 106% 809 (831 of 889) 25-18 (Objective 25-1) The following are miscellaneous questions about compilation and review services. Choose the best response. a. It is acceptable for a CPA to be associated with financial statements when not inde- pendent with respect to the client and still issue a substantially unmodified report for which of the following: (1) Audits of companies following GAAP. (2) Audits of companies on a comprehensive basis of accounting other than GAAP. (3) Review of financial statements following GAAP. (4) Compilation of financial statements following GAAP. b. A CPA is performing review services for a small, closely held manufacturing company. As a part of the follow-up of a significant decrease in the gross margin for the current year, the CPA discovers that there are no supporting documents for $40,000 of disburse- ments. The chief financial officer assures her that the disbursements are proper. What should the CPA do? (1) Include the unsupported disbursements without further work in the statements on the grounds that she is not doing an audit. (2) Modify the review opinion or withdraw from the engagement unless the unsup- ported disbursements are satisfactorily explained. (3) Fclude the end