19 During the compilation of financial statements of a nonpu

19. During the compilation of financial statements of a nonpublic entity, an accountant becomes aware of a material departure from GAAP in the statements. If management refuses to correct the statements, the accountant should a. issue an \"except for\" compilation report b. disclose the departure from GAAP in a separate paragraph of the compilation report c. issue an adverse compilation opinion d. none of these

Solution

Correct answer is B. disclose the departure from GAAP in a seperate paragraph of the compilation report.

If management refuses to correct the statements of a material departure then it is the duty of the accountant to disclose the departure from GAAP in a seperate paragraph of the compilation report.