Why might the members of the association be

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Unformatted text preview: s stores have been growing rapidly, and there appears to be a market for the company’s sales concept—providing bulk garden equipment and supplies at low prices. The controller prepares the company’s financial statements, which are not audited. The company has no debt but is considering expanding to other cities in Florida. Such expansion may require long-term borrowings and is likely to reduce the family’s day-today control of the operations. The family does not intend to sell stock in the company. Required: Discuss the factors that may make an audit necessary and potentially valuable for the company. Be sure to consider the concept of information risk. LO 3,5,6 1-26 You were recently hired by the CPA firm of Honson & Hansen. Within two weeks, you were sent to the first-year staff training course. The instructor asks you to prepare answers for the following questions: a. How is audit evidence defined? b. How does audit evidence relate to assertions and to the audit report...
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This note was uploaded on 12/08/2012 for the course ACCT 564 at Washington University in St. Louis.

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