Delta Life Insurance Co. prepares its financial statements on an accounting basis insurance companies use pursuant to the rules of a state insurance commission. If Wall, CPA, Delta's auditor, discovers that the statements are not suitably titled, Wall should:
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a. | Explain in the notes to the financial statements the terminology used. | |
b. | Disclose any reservations in a basis for modification paragraph and qualify the opinion. | |
c. | Issue a special statutory basis report that clearly disclaims any opinion. | |
d. | Apply to the state insurance commission for an advisory opinion. |
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