The Mobile Home Manufacturing Company is audited by the public accounting firm Rossi and Montgomery. Mobile Home has decided to issue stock to the public and wants Rossi and Montgomery to perform all the audit work necessary to satisfy the requirements for filing with the OSC. The public accounting firm has never had a client go public before.
REQUIRED
a. What are the implications of Rossi and Montgomery accepting the engagement?
b. List the additional issues confronting the auditors when they file with the OSC as compared with dealing with a regular audit client.