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L2 Notes_Part_13 - available Can it be...

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GAAP Linden Corporation is a large retailer that has material investments in stocks of subsidiary companies. Stocks of these small subsidiary companies are not actively traded in the market, and the CPA's engagement does not extend to any subsidiary company. The CPA is able to satisfy herself that all of the investments are carried at cost, and she has no reason to suspect that the amounts are not stated fairly.
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GAAS Departures Is the scope limitation material? Alternative procedures
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Unformatted text preview: available? Can it be “compartmentalized”? Qualified Report Standard Report Disclaimer of Opinion No Scope limitation identified Standard Report Yes Yes No No Yes positive confirmations not received, alternative procedures failed Can’t observe inventory Management won’t sign representation letter Unaudited entity reported on F/S using the equity method Client’s attorney will not respond Can’t obtain the minutes of the board of directors. Quarterly Earnings Management...
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  • Fall '08
  • Corporation, scope limitation, earnings management, subsidiary companies, Linden Corporation, small subsidiary companies

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L2 Notes_Part_13 - available Can it be...

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