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Unformatted text preview: competitor in western Canada. After some discussion with your clients controller, the company agreed to add a note to the financial statements that outlines the nature of the contingency. Your legal letter to the clients solicitor concluded that the occurrence of the confirming future event is likely but the amount of the loss cannot be reasonably estimated. File 3: A member of the audit team noted that a lease for a vehicle was recorded as a capital lease when in fact it was an operating capital lease. Your staff member noted the unadjusted error and concluded the effect on a number of accounts was material. The client refused to record the lease as an operating lease and to make any adjustments. File 4 Jazz Company, a large public company, has agreed to disclose segmented information in its financial statements. _...
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- Spring '11