Miller, CPA, Is Engaged to Compile the Financial Statements of Web

Multiple Choice

Miller, CPA, is engaged to compile the financial statements of Web Co., a nonissuer, in conformity with the income tax basis of accounting. If Web's financial statements do not disclose the basis of accounting used, Miller should:

A) Disclose the basis of accounting in the accountant's compilation report.
B) Clearly label each page "Distribution Restricted-Material Modifications Required."
C) Issue a special report describing the effect of the incomplete presentation.
D) Withdraw from the engagement and provide no further services to Web.