The annual report of Meinike Computer, Inc., included the following:
Management’s Annual Report on Internal Control over Financial Reporting
The Company’s management is responsible for establishing and maintaining adequate control over financial reporting [....] Management conducted an evaluation of the effectiveness of the Company’s internal control over financial reporting [....] Based on this evaluation, management has concluded that the Company’s internal control over financial reporting was effective as of September 30, 2014....
Report of Independent Registered Public Accounting Firm
The Board of Directors and Shareholders
Meinike Computer, Inc.:
We have audited the accompanying consolidated balance sheets of Meinike Computer, Inc., and subsidiaries ( the Company) as of September 30, 2014, and September 30, 2013, and the related consolidated statements of operations, comprehensive income, shareholders’ equity, and cash flows for each of the years in the three- year period ended September 30, 2014. We have also audited the company’s internal control over financial reporting. These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits and an opinion on the company’s internal control over financial reporting based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States)....
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of September 30, 2014, and September 30, 2013, and the results of its operations and its cash flows for each of the years in the three- year period ended September 30, 2014, in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion the company maintained effective internal control over financial reporting.
SLMA LLP
Aurora, Colorado
December 28, 2014
1. Who is responsible for Meinike’s financial statements?
2. By what accounting standards are the financial statements prepared?
3. Identify one concrete action that Meinike management takes to fulfill its responsibility for the reliability of the company’s financial information.
4. Which entity gave an outside, independent opinion on the Meinike financial statements? Where was this entity located, and when did it release its opinion to the public?
5. Exactly what did the audit cover? Give names and dates.
6. By what standards did the auditor conduct the audit?
7. What was the auditor’s opinion of Meinike’s financial statements?