You Are a Public Accountant Retained by the Manager of a Cooperative

Multiple Choice

You are a public accountant retained by the manager of a cooperative retirement village to do "write-up work." You are expected to prepare unaudited financial statements with each page marked "unaudited" and accompanied by a disclaimer of opinion stating no audit was made.In performing the work,you discover that there are no invoices to support $25 000 of the manager's claimed disbursements.The manager informs you that all the disbursements are proper.What should you do?

A) Submit the expected statements but omit $25 000 of unsupported disbursements.
B) Include the unsupported disbursements in the statements since you are not expected to make an audit.
C) Obtain from the manager a written statement that you informed him of the missing invoices and include his assurance that the disbursements are proper.
D) Obtain further information about the $25 000 of unsupported items and withdraw if the situation is not satisfactorily resolved.