miller cpa is engaged to compile the financial statements of web co a nonpublic enti 602378

Miller, CPA, is engaged to compile the financial statements of Web Co., a nonpublic entity, in conformity with the income tax basis of accounting. If Web’s financial statements do not disclose the basis of accounting used, Miller should

1. Disclose the basis of accounting in the accountant’s compilation report.
2. Clearly label each page “Distribution Restricted—Material Modifications Required.”
3. Issue a special report describing the effect of the incomplete presentation.
4. Withdraw from the engagement and provide no further services to Web.