During an Engagement to Review the Financial Statements of a Nonpublic

Multiple Choice

During an engagement to review the financial statements of a nonpublic entity, an accountant becomes aware of a material departure from GAAP. If the accountant decides to modify the standard review report because management will not revise the financial statements, the accountant should:

A) express negative assurance on the accounting principles that do not conform with GAAP.
B) disclose the departure from GAAP in a separate paragraph of the report.
C) issue an adverse or an "except for" qualified opinion, depending on materiality.
D) express positive assurance on the accounting principles that conform with GAAP.