In 2011, your firm issued an unmodified report on Tosi Corporation, a private company. During 2013, Tosi entered its first lease transaction, which you have determined is material but not pervasive and meets the criteria for a capitalized lease. Tosi Corporation’s management chooses to treat the transaction as an operating lease. What types of reports would you issue on the corporation’s comparative financial statements for 2012 and 2013?
Answer to relevant QuestionsWhat are the auditor’s responsibilities for other information included in an entity’s annual report? For each of the following independent situations, indicate the type of financial statement audit report that you would issue and briefly explain your reasoning. Assume that all companies mentioned are private companies and ...You are auditing the financial statements for your new client, Paper Pack-aging Corporation, a manufacturer of paper containers, for the year ended March 31, 2014. Paper Packaging’s previous auditors had issued a going ...Summarize the major differences between the AICPA’s Code of Professional Conduct independence rules and the SEC’s independence rules for auditors of public companies. Briefly describe why the SEC’s requirements ...The questions that follow are based on Rule 101 of the AICPA Code of Professional Conduct as it relates to independence and family relationships. Check yes if the situation violates the rule, no if it does not.Situation a. A ...
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