Green Thumb Landscapers (GTL) is one of the largest landscaping companies in Eastern Canada, providing multiple...
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Green Thumb Landscapers (GTL) is one of the largest landscaping companies in Eastern Canada, providing multiple services. In addition, GTL operates three retail stores that sell garden equipment and supplies at very competitive prices. The company has grown rapidly since its inception 20 years ago. The Asakawa family owns 100% of GTL's shares and manages all the company's operations. The controller of GTL prepares the company's annual financial statements, which are currently not audited. The company has no debt but is considering expanding to keep up with the increasing demand for its services. The company is looking to obtain debt financing. GTL's owners do not wish to obtain equity financing through private or public placements. Yoko, one of the owners of GTL, has some general knowledge of audits and review engagements but isn't familiar with the detailed similarities and differences between them. She is not sure whether GTL's financial statements should be audited or reviewed, what type of work would be performed for each engagement, or how this decision would impact GTL's ability to obtain financing. Required: a) Outline the main similarities and differences between audit and review engagements. b) Identify which engagement would be most suitable for GTL in its current situation and explain why. Green Thumb Landscapers (GTL) is one of the largest landscaping companies in Eastern Canada, providing multiple services. In addition, GTL operates three retail stores that sell garden equipment and supplies at very competitive prices. The company has grown rapidly since its inception 20 years ago. The Asakawa family owns 100% of GTL's shares and manages all the company's operations. The controller of GTL prepares the company's annual financial statements, which are currently not audited. The company has no debt but is considering expanding to keep up with the increasing demand for its services. The company is looking to obtain debt financing. GTL's owners do not wish to obtain equity financing through private or public placements. Yoko, one of the owners of GTL, has some general knowledge of audits and review engagements but isn't familiar with the detailed similarities and differences between them. She is not sure whether GTL's financial statements should be audited or reviewed, what type of work would be performed for each engagement, or how this decision would impact GTL's ability to obtain financing. Required: a) Outline the main similarities and differences between audit and review engagements. b) Identify which engagement would be most suitable for GTL in its current situation and explain why.
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a Main Similarities and Differences between Audit and Review Engagements Similarities 1 Objective Both audit and review engagements are performed to provide assurance on the financial statements of an ... View the full answer
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
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