Your client has chosen to prepare financial statements using the Income Tax Basis of Accounting.

1.The Accounting Policies Footnote disclosure should include: a statement that the financial statements are prepared using Income Tax Basis of Accounting (ITB) and that the ITB is a basis of accounting other than U.S. generally accepted accounting principles (GAAP). There should also be a description as to how the ITB differs from GAAP.

Select one:

True

False

2.The accountants responsibility to detect fraud in each of the following is:

None in a compilation engagement.

Select one:

True

False

3.The accountants responsibility to detect fraud in each of the following is:

Total responsibility in a review engagement.

Select one:

True

False