Reference no: EM132475051

Review applicable AICPA Accounting and Review Services standards.

Point 1:  A current audit client (Acme Manufacturing, Corp.) is aware there are other types of assurance services. The CFO, Joan Brown, approached you about obtaining information that will help them determine the possibility of changing from a financial statement audit to a compilation or review service. She explained the company is considering changing from having an audit performed on their financial statements to having a compilation or review performed on their financial statements. While they are aware there are different types are services, they have limited knowledge about each specific service.

Point 2:  As such, they want to gain a further understanding of each service and how they differ from a financial statement audit. Acme Manufacturing Corp. is privately owned company. Acme has an outstanding bank loan and receives locally-funded economic development funding from a local government. In addition, the company's insurance company requires a fidelity bond covering all of its employees and officers in the event of theft or dishonesty.

Question : write a letter to the CFO .The letter should include the following elements:

1. Purpose of the letter, including identification of issue

2. Relevant facts

3. Relevant authoritative literature

4. Analysis of relevant facts against authoritative literature

5. Any assumptions and implications for the company

6. Conclusion