Lesson: Omitting Substantially All Disclosures

This lesson discusses the concept of omitting substantially all disclosures in compiled or prepared financial statements. Nick Palazzolo, CPA, explains that an accountant can issue such financial statements without disclosures as long as the report discloses the omission. He provides an example and emphasizes that if the financial statements include only one or two notes while omitting the majority of them, the situation still needs to be addressed. Furthermore, the lesson stresses the importance of the accountant's assessment regarding whether the management's decision to include only selected disclosures causes the financial statements to be misleading, and if so, the financial statements should be revised to include the omitted disclosures. Lastly, Nick clarifies that the selected disclosure option is not available for financial statements subject to a review.