Which of the following services may a practitioner who is not considered independent provide?

Which of the following services may a practitioner who is not considered independent provide?

• A. Financial audits
• B. Reviews of financial statements
• C. Compilation services
• D. Tax advisory services

Answer: (C)

A practitioner who is not considered independent can provide compilation services because this type of service does not involve an assurance engagement. In a compilation, the practitioner assists management in preparing financial statements based on information provided by management without needing to verify or review that information. This level of engagement does not require independence since the practitioner is not providing any form of opinion or assurance about the reliability of the financial statements. In contrast, financial audits and reviews of financial statements are considered assurance services that require a higher level of scrutiny and independence. Independence is essential in these cases to maintain objectivity and avoid any conflicts of interest that could arise from the practitioner's non-independent status. Tax advisory services can sometimes require independence depending on the nature of the services provided, particularly if they intersect with audit or other assurance services. Therefore, the only service that a practitioner can provide without being independent is compilation services.

A practitioner who is not considered independent can provide compilation services because this type of service does not involve an assurance engagement. In a compilation, the practitioner assists management in preparing financial statements based on information provided by management without needing to verify or review that information. This level of engagement does not require independence since the practitioner is not providing any form of opinion or assurance about the reliability of the financial statements.

In contrast, financial audits and reviews of financial statements are considered assurance services that require a higher level of scrutiny and independence. Independence is essential in these cases to maintain objectivity and avoid any conflicts of interest that could arise from the practitioner's non-independent status. Tax advisory services can sometimes require independence depending on the nature of the services provided, particularly if they intersect with audit or other assurance services. Therefore, the only service that a practitioner can provide without being independent is compilation services.