(1) draft a problem-identification issue statement (the question presented); (2)
ID: 2444647 • Letter: #
Question
(1) draft a problem-identification issue statement (the question presented); (2) identify key search words you would use in conducting research using an electronic database; and (3) your conclusion; and (4) a discussion of the relevant authorities that you applied to the facts to reach the conclusion.
Mr. Wells, CPA reviewed Big Beats, Inc.'s interim financial information, and he concluded that the interim financial information was not prepared in accordance with an applicable financial reporting framework. Big Beats, Inc. included the interim financial information as part of its audited financial statements; however, the audited financial statements neither incorporated nor referenced the review report (including the applicable financial reporting departure). The audit partner requests your assistance in researching the impact on the financial statement audit report.
Explanation / Answer
1)Problem - Identification issue statement-
the interim financial information of the Big Beats Inc's is not prepared in accordance with an applicable finanacial reporting framework .It has include in its interim report as portion of guided financial statements , which neither incorporated nor referenced the review report
2) key words to include
- financialr reporting framewodk
- Audited financial statements
- Characterstics of useful financisl information
3)conclusion
The interim financial information has been include as part of audited financial reporting framework which is not the case
4) The fianacial reporting is not accoridng to the reporting methodology - GAAP or non GAAP . Since th framework fails to produce relaiable interim financial statement it has been concluded that it does not include the key approach.
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