On March 12, 2019, Kristen & Valentine, CPAs, completed the audit of the financial statements of Modern
Question:
On March 12, 2019, Kristen & Valentine, CPAs, completed the audit of the financial statements of Modern Museum, Inc., for the year ended December 31, 2018. Modern is a privately held company. Modern Museum presents comparative financial statements on a modified cash basis. Assets, liabilities, fund balances, support, revenues, and expenses are recognized when cash is received or disbursed, except that Modern includes a provision for depreciation of buildings and equipment. Kristen & Valentine believes that Modern’s three financial statements, prepared in accordance with a basis of accounting other than generally accepted accounting principles, are adequate for Modern’s needs and wishes to issue a special report on the financial statements. Kristen & Valentine has gathered sufficient competent evidence to be satisfied that the financial statements are fairly presented according to the modified cash basis. Kristen & Valentine audited Modern’s 2017 financial statements and issued an auditor’s special report expressing an unmodified opinion.
Required:
Draft the audit report to accompany Modern’s comparative financial statements.
Audit ReportThe audit report is issued by a certified public accountant who is appointed by the shareholders to provide assurance upon the truth and fairness of the financial statements prepared by the managers of the company. Audit report contains the... Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Step by Step Answer:
Auditing & Assurance Services A Systematic Approach
ISBN: 978-1260687637
11th Edition
Authors: William F Messier Jr, Steven M Glover, Douglas F Prawitt