An accountant has been asked to compile the financial statements of a nonpublic company on a prescribed form that omits substantially all the disclosures required by generally accepted accounting principles. If the prescribed form is a standard preprinted form adopted by the company’s industry trade association, and is to be transmitted only to such association, the accountant
　　A. Should disclose the details of the omissions in separate paragraphs of the compilation report.
　　B. Is precluded from issuing a compilation report when all disclosures are omitted.
　　C. Should express limited assurance that the financial statement are free of material misstatements.
　　D. Need not advise the industry trade association of the omission of all disclosures.
　　Answer:D
　　D is corrent because the professional standards state that there is a presumption that the information required by a prescribed form is sufficient to meet the needs of the body that designed or adopted it; accordingly, there is no need for that body to be advised of departures from GAAP.
　　A is incorrect because details of the omissions need not be provided.
　　B is incorrect because a compilation report may be issued in such circumstances.
　　C is incorrect because compilation reports provide no assurance that the financial statements are free of material misstatement.