Slow Burn Candle, Inc., a public company, asked its CPA, Parker Granger, to assist it in preparing
Question:
Slow Burn Candle, Inc., a public company, asked its CPA, Parker Granger, to assist it in preparing footnotes for unaudited financial statements as of June 30, 19X5. Granger has previously audited the company's annual financial statements as of December 31, 19X4.
a. If Granger assisted in drafting footnotes for the unaudited financial statements, but did not append his name to them, would he be deemed to be associated with them?
b. If Granger did no work on the unaudited financial statements and only consented to a statement in a transmittal letter that he was the company's auditor, would he be deemed to be associated with them?
c. If Granger is deemed to be associated with the unaudited financial statements, what is his reporting responsibility?
d. What is Granger's reporting responsibility if the unaudited financial statements are presented in comparative form with audited financial statements?
Step by Step Answer:
Auditing An Assertions Approach
ISBN: 9780471134213
7th Edition
Authors: G. William Glezen, Donald H. Taylor