The Luna Veterinary Group LLC is considering expanding their veterinary practice by opening a second office...
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The Luna Veterinary Group LLC is considering expanding their veterinary practice by opening a second office in a nearby town and has hired a new veterinarian, Rachael Bosco, DVM, to run the new office. Dr. Christie Luna, DVM, is president of The Luna Veterinary Group and she knows her business is profitable, but the LLC does not produce regular financial statements, nor does she possess the technical knowledge to prepare GAAP financial statements. When discussing the potential expansion with the Dog & Cat Savings Bank, their banking officer, Joanne Boomer, said in their meeting: "I would need a GAAP financial statement of the Luna Veterinary Group for you last year end. I would also need a CPA's report of some type attached to the financial statements." After meeting with the Dog & Cat Savings Bank, Dr. Luna calls her CPA firm. Required: Consider the LLC's need for financing from the Cat and write a memo outlining the pros and cons the three levels of service the CPA firm could provide: compilation and review under the AICPA Statements on Accounting and Review Services (SSARS) and an audit of the LLC's financial statements under the AICPA Statement of Auditing Standards (SAS). Describe the nature of each of the three services to Dr. Christie Luna. Conclude your memo with a recommendation for what you believe would best service Dr. Luna's needs. The Luna Veterinary Group LLC is considering expanding their veterinary practice by opening a second office in a nearby town and has hired a new veterinarian, Rachael Bosco, DVM, to run the new office. Dr. Christie Luna, DVM, is president of The Luna Veterinary Group and she knows her business is profitable, but the LLC does not produce regular financial statements, nor does she possess the technical knowledge to prepare GAAP financial statements. When discussing the potential expansion with the Dog & Cat Savings Bank, their banking officer, Joanne Boomer, said in their meeting: "I would need a GAAP financial statement of the Luna Veterinary Group for you last year end. I would also need a CPA's report of some type attached to the financial statements." After meeting with the Dog & Cat Savings Bank, Dr. Luna calls her CPA firm. Required: Consider the LLC's need for financing from the Cat and write a memo outlining the pros and cons the three levels of service the CPA firm could provide: compilation and review under the AICPA Statements on Accounting and Review Services (SSARS) and an audit of the LLC's financial statements under the AICPA Statement of Auditing Standards (SAS). Describe the nature of each of the three services to Dr. Christie Luna. Conclude your memo with a recommendation for what you believe would best service Dr. Luna's needs.
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Dear Dr Luna Thank you for inquiring about our services We would be happy to provide you with a comp... View the full answer
Related Book For
Accounting Information Systems
ISBN: 978-0133428537
13th edition
Authors: Marshall B. Romney, Paul J. Steinbart
Posted Date:
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