Reference no: EM131155601
Lucia Johnson, of Johnson and Lecy, CPAs, has completed the first-year audit of Tidwell Publishing Co., a publicly held company, for the year ended December 31, 2011. She is now working on a review of interim financial statements for the quarter ended March 31, 2012. Johnson has never done an interim review of a public company, but her firm does extensive compilation and review work. She therefore has one of her most experienced assistants, Fred Blair, do the work. She instructs him to follow the firm's standard review services procedures for SSARS reviews and to do high-quality work because Tidwell is a high-risk client. Blair completes the review of Tidwell's statements and Johnson carefully reviews Blair's work. No exceptions are found. Each page of the client's financial statements is marked "reviewed." The following report is issued.
SECURITIES AND EXCHANGE COMMISSION
We have reviewed the accompanying balance sheet of Tidwell Publishing Co. as of March 31, 2012, and the related statements of income, retained earnings, and changes in financial position for the year then ended, in accordance with the standards of the Public Company Accounting Oversight Board (United States). All information included in these financial statements is the representation of the management of Tidwell Publishing Co.
A review consists principally of inquiries of company personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with the standards of the Public Company Accounting Oversight Board, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with generally accepted accounting principles.
Johnson & Levy, CPAs
March 31, 2012
Required
a. Is it appropriate to do a review service for a publicly held company? Explain.
b. Evaluate the approach taken by Johnson and Blair on the engagement.
c. Evaluate the report.
|
Course project-understanding creative capitalism
: In this assignment, you will examine the concept of creative capitalism. Bill Gates, cofounder and chairperson of Microsoft Corporation, advocates that in addition to seeking profits, corporations should also become social entrepreneurs in order t..
|
|
Privacy foundation guidelines for web beacons
: 1. What kinds of controls might allow marketers to use Web tracking but also protect individual privacy? 2. Do you think your Web browsing should be known to marketers? Should online shopping be allowed to be a private activity? 3. What are the Pri..
|
|
What is bubble pressure of the mixture at 45 °c
: Two moles of benzene are mixed with 3 moles of acetonitrile under constant temperature and pressure at 45 °C and 33 kPa. What is the phase of the mixture (vapor, liquid, or mixed)?
|
|
Which scenario is the best from an economic standpoint
: Which scenario is the best from an economic standpoint? Are there any other considerations, such as environmental/health/social issues, which have impacted this option and to what extent?
|
|
Principally of inquiries of company personnel
: A review consists principally of inquiries of company personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with the standards of the Public Company Accounting Oversight Board, th..
|
|
Portfolio weights for a portfolio
: What are the portfolio weights for a portfolio that has 165 shares of Stock A that sell for $43 per share and 120 shares of Stock B that sell for $74 per share?
|
|
Is there a study that you find most convincing
: For example, there have been incidents in which a person on the street is being attacked and cries for help, and yet people who could make a phone call to the police to ask for help do not. Utilizing what you have learned about social psychology, ..
|
|
Aggregate equation according to john maynard keynes
: 1. C+I+G+(X-M) = GDP is the aggregate equation according to John Maynard Keynes. How does immigration affect the overall equation. Pros/Cons?
|
|
Evaluate the business model of the selected business
: Evaluate the business model of the selected business. Assess the necessity for training to be provided to you by the seller. Identify all of the issues you should investigate in the process of performing a feasibility analysis and due diligence
|