Can I help? ToCo, Inc., a nonpublic audit client of your firm, is requesting that your...

 

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Can I help? ToCo, Inc., a nonpublic audit client of your firm, is requesting that your firm provide advisory services to assist in its adoption of CECL accounting requirements. That is, ToCo would like your firm's assistance formu- lating an acceptable approach for measuring its accounts receivable allowance account in accordance with the new framework set forth in ASC 326-20 (Financial Instruments--Credit Losses). You are the audit manager on ToCo's audit. Should your firm assist ToCo? Now assume ToCo is a public company. Does this change your response? Can I help? ToCo, Inc., a nonpublic audit client of your firm, is requesting that your firm provide advisory services to assist in its adoption of CECL accounting requirements. That is, ToCo would like your firm's assistance formu- lating an acceptable approach for measuring its accounts receivable allowance account in accordance with the new framework set forth in ASC 326-20 (Financial Instruments--Credit Losses). You are the audit manager on ToCo's audit. Should your firm assist ToCo? Now assume ToCo is a public company. Does this change your response?

Answer rating: 100% (QA)

In the factual incident ToCo Inc Is a non public audit client The firm should assist the ToCo because As companies have started implementing Accounting Standards Codification ASC 326 Financial Instrum... View the full answer