When an Accountant Is Not Independent of an Entity and Is

Multiple Choice

When an accountant is not independent of an entity and is requested to perform a compilation of the entity's financial statements, the accountant:

A) is precluded from accepting the engagement.
B) may accept the engagement and need not disclose the lack of independence.
C) may accept the engagement, should disclose the lack of independence, and may indicate the reason for the lack of independence.
D) may accept the engagement and must disclose both the lack of independence and the reason for the lack of independence.