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blue cpa has been asked to render an opinion on the application of accounting princi 602429

Blue, CPA, has been asked to render an opinion on the application of accounting principles to a specific transaction by an entity that is audited by another CPA. Blue may accept this engagement, but should

  1. Consult with the continuing CPA to obtain information relevant to the transaction.
  2. Report the engagement’s findings to the entity’s audit committee, the continuing CPA, and management.
  3. Disclaim any opinion that the hypothetical application of accounting principles conforms with generally accepted accounting principles.
  4. Notify the entity that the report is for the restricted use of management and outside parties who are aware of all relevant facts.

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