lec2 example BV letters handout

lec2 example BV letters handout - Bon Vivant Barbecue...

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Bon Vivant Barbecue Company Example Engagement Letter Manning & Lee LLP Public Accountants Place Louis Riel. Suite 400, Winnipeg, Manitoba R8G 2H7 (204) 675-2000 Mr. Joseph M. Palenski, Chairman of the Board of Directors Bon Vivant Barbecue Company 487 St. Boniface Boulevard Winnipeg, Manitoba R3K 2G2 Dear Mr. Palenski: You have requested that we audit the financial statements of Bon Vivant Barbecue Company, which comprise the balance sheet as at December 31, 2010, and the income statement, statement of changes in equity and cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information. We are pleased to confirm our acceptance and our understanding of this audit engagement by means of this letter. Our audit will be conducted with the objective of our expressing an opinion on the financial statements. We will conduct our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. Because of the inherent limitations of an audit, together with the inherent limitations of internal control, there is an unavoidable risk that some material misstatements may not be detected, even though the audit is properly planned and performed in accordance with Canadian generally accepted auditing standards. In making our risk assessments, we consider internal control relevant to the entity's preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. However, we will communicate to you in writing concerning any significant deficiencies in internal control relevant to the audit of the financial statements that we have identified during the audit. Our audit will be conducted on the basis that management and the Board of Directors acknowledge and understand
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lec2 example BV letters handout - Bon Vivant Barbecue...

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