You are about to issue a report on the compiled financial statements of ABC Comp

Question

You are about to issue a report on the compiled financial statements of ABC Company. However, you feel you lack independence because you are an officer and 20% stockholder in the company. Which of the following is applicable?Question options:
a. you should not be performing a compilation when are are not independent
b. you should modify your report letter by adding the following sentence to the last paragraph: "I am not independent with respect to ABC Company."
c. you should modify your report letter by adding the following sentance to the last paragraph: "I am not independent with respect to ABC Company in as much as I am an officer of ABC Company."
d. no modification of the report letter is required, since independence is not required in a compilation engagement

note. a is not the answer

Explanation / Answer

You are about to issue a report on the compiled financial statements of ABC Company. However, you feel you lack independence because you are an officer and 20% stockholder in the company. Which of the following is applicable?Question options: d. no modification of the report letter is required, since independence is not required in a compilation engagement

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