How should the translated financial statements be addressed

Reference no: EM132718398

Question - Horace and Lee CPAs (H&L) is a medium-sized CPA firm that performs review and audit engagements for mostly privately held companies. H&L also has a tax group.

H&L is considering accepting a new client, Real Renovations Inc. (RRI). RRI is a small private construction company that reports its financial statements under ASPE and requires a financial statement audit to satisfy its two preferred shareholders. The preferred shareholders receive modest, annual dividend payments that are determined based on profitability.

The president and majority shareholder of RRI, Sam Real, is the nephew of one of H&L's assurance partners. Sam is very close to his aunt and is she excited that RRI will become one of her firm's clients.

Sam wants H&L to perform its annual financial statement audit and prepare its annual corporate tax return. RRI's previous auditor has retired. You, CPA, would be engaged for the 2019 fiscal year end.

RRI has informed you that one of its shareholders requires the financial statements and related note disclosures to be provided in German. RRI plans to have the final financial statements translated from English to German, and will then attach a copy of H&L's audit report to the translated financial statements. H&L understands the need for the German shareholder to have the translated financials and wants to accommodate.

How should the translated financial statements be addressed within the requirements of CSOA 5000 Use of the Practitioner's Communication or Name?

Reference no: EM132718398

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