Question

1. A company hires one of its board members, a CPA, to issue accounting reports for thecompany. Assuming any required disclosures are made, which of the following reports may theCPA issue without violating independence rules.B. ReviewsC. AuditsD. Agreed»upon procedures

Answer 1

Answer:

Compilations.

Explanation:

A compilation is part of the write-up service of accounting firms that involves conversion of data into financial statements without providing assurances or auditing services.

A compilation report usually accompanied the financial statements to show that data is well represented, and also to show that there has been no audit so the accountant is not giving an opinion.

So the CPA will not be violating independent rules by working on compilations.