Jiffy Clerical Services is a company that furnishes temporary office help to its customers. The company maintains its accounting records on a basis of cash receipts and cash disbursements.
You have audited the company for the year ended December 31, 20X4, and have concluded that the company’s financial statements represent a fair presentation on that basis.
a. Draft the unqualified auditors’ report you would issue covering the financial statements (a statement of assets and liabilities and the related statement of revenue collected and expenses paid) for the year ended December 31, 20X4.
b. Briefly discuss and justify your modifications of the conventional standard auditors’ report on GAAP financial statements.