5-99. As you may recall from the introductory case study, the 1985 and 1986 financial statements of ZZZZ Best were audited by CPA firms. After reviewing the case study, along with the sections of the chapter related to the types of financial statements and their implied assurances, prepare a memo to your professor discussing the following:

• The nature of the implied assurances

• The accounting principles that may have been violated by ZZZZ Best

• The context of the financial statement presentation