In connection with a proposal to obtain a new client, an accountant in public practice is asked to prepare a written report on the application of accounting principles to a specific transaction. The accountant’s report should include a statement that
- Any difference in the facts, circumstances, or assumptions presented may change the report.
- The engagement was performed in accordance with Statements on Standards for Consulting Services.
- The guidance provided is for management use only and may not be communicated to the prior or continuing auditors.
- Nothing came to the accountant’s attention that caused the accountant to believe that the accounting principles violated GAAP.