Question: What steps should auditors take if during a compilation engagement they become aware that the financial statements are misleading? Question content area bottom Part 1
What steps should auditors take if during a compilation engagement they become aware that the financial statements are misleading?
Question content area bottom
Part 1
For a compilation, the accountant
does or does not? (answer) have to make inquiries or perform other procedures to verify information supplied by the entity beyond the procedures required of an auditor by SSARS for a compilation. If the accountant becomes aware that the statements are not fairly presented,
he/she should obtain addition information or no further actions are required because this is a compilation? (answer)
If the client refuses to provide the information,
A. no further actions are required because this is a compilation report
B. the accountant should state that fact in the report
C. the accountant should withdraw from the compilation engagement
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