Question

Must a CPA in public practice be independent in fact and appearance when providing the following services?

a-Compilation of Personal Financial Statements;
b-Preparation of a Tax Return;
c-Compilation of a Financial Forecast

Answer 1

Yes, a CPA in public practice must be independent in fact and appearance when providing these services.

Step-by-step explanation:

Yes, a CPA in public practice must be independent in fact and appearance when providing the services mentioned.

1. Compilation of Personal Financial Statements: Independence is important to ensure that the CPA provides an objective opinion on the financial statements without any biases.
2. Preparation of a Tax Return: Independence ensures that the CPA isn't influenced by personal interests or relationships when determining the accurate amount of taxes owed.
3. Compilation of a Financial Forecast: Independence is necessary to provide an unbiased evaluation of the financial projections and to maintain the integrity and credibility of the forecast.