Randy & Green, CPAs, have completed their year-end audit of Jackson, Inc. A review of the audit
Question:
Randy & Green, CPAs, have completed their year-end audit of Jackson, Inc. A review of the audit documentation indicates that Jackson changed its depreciation method during the year. The documentation also indicates that Randy & Green concur with the change and with the method of effecting the change, but that there is a material effect on the financial statements for the year under audit.
What guidance is provided by AICPA Professional Standards with respect to appropriate modifications to the auditor's report in this situation?
Under what general conditions must companies record loss contingencies?
Could the potential EPA-related loss contingency of BRIC Industries require the company to adjust its year-end financial statements? Explain.
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson