WrkOnln is a company that provides a cloud-based platform which allows people to work remotely in teams. Their year end is September 30. The company was founded in 2010 in Montreal, where it is currently headquartered. The company is private and has been since its inception. 70% of the company is owned by venture capitalists, and 30% is owned by the founders and employees of the company.

In the Summer of 2021, the company was approached by several private equity funds as well as large technology companies who were interested in purchasing the company from its current owners. The board decided that selling the company to one of the prospective buyers would be the best option for the company. To ensure that the potential buyers have the best information regarding the company's finances, in September of 2021 WrkOnln hired ACCO360 which is an audit firm in Montreal with a lot of experience auditing technology companies.

You are a partner at ACCO360 who is responsible for the upcoming audit of WrkOnln. You have reached out to OLD CPA, the predecessor auditor of WrkOnln. Per your communication with Jane Doe, the partner at OLD CPA responsible for all previous audits of WrkOnln, you learned that accounting at the company was done very well, there were very few errors uncovered, and they were all quickly fixed by the CFO, who seemed overall very interested in making sure that accounting was done correctly. The company had strong controls over financial reporting, as well an overall attitude of compliance with rules and ethical behavior, which, as Jane Doe thought, was the main reason for the high quality of their financial reporting.

WrkOnln has made several acquisitions over the years, and thus has several subsidiaries that are located in Canada, the US, and Europe. These subsidiaries are companies that provide similar services as WrkOnln. The latest acquisition was made in 2019 and was a company in Germany. As a result of international operations, the company is subject to stringent laws in regulations in multiple countries (i.e. data protection, privacy, e-marketing).

Statement of Financial Position Fiscal Year 2021 Cash 170 Accounts Receivable 5 PPE 3 Goodwill 90 Total Assets 268 Accounts Payable 70 Other Current Liabilities 40 Total Liabilities 110 Shareholders' Equity 158 Statement of Comprehensive Income Fiscal Year 2021 Revenue 150 Cost of Revenue 30 Gross Prot 120 Research and development 45 Selling, general, and 90 administrative Other expenses 15 Net income -30 2020 1 20 90 2 1 7 50 28 78 139 2020 110 18 92 25 70 18