Identify information used in making an informed decision Charlie and Maribelle Brown have owned and operated a retail furniture store for more than 30 years. They have employed an independent CPA during this time to prepare various sales tax, payroll tax, and income tax returns, as well as financial statements for themselves and the bank from which they have borrowed money from time to time. They are considering selling the store but are uncertain about how to establish an asking price.
Required:
What type of information is likely to be included in the material prepared by the CPA that may help the Browns establish an asking price for the store?
Auditor independence Using the search engine you are most comfortable with, identify at least five sources on the general topic of auditor independence. Write a brief memo to provide an update on the current status of the auditor independence tandard setting process. The Business in Practice box on page 12 should serve as the starting point for this exercise. Note: You might find it useful to contrast the opinions expressed by any of the Big 4 accounting firms to those expressed by non accounting professionals.
Find financial information From the set of financial statements acquired for E1.1, determine the following:
a. Who is the chief financial officer?
b. What are the names of the directors?
c. Which firm conducted the audit? Have the auditors reviewed the entire report?
d. What are the names of the financial statements provided?
e. How many pages of explanatory notes accompany the financial statements?
f. In addition to the financial statements, are there other reports? If so, what are they?