Accounting
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ANSWER KEY
REEDY AND ABEL CERTIFIED PUBLIC ACCOUNTANTS
Mr. Conrad P. Saws, President
Mt. Hood Furniture, Inc.
80 Fast Lane
Portland, Oregon 97207
Dear Mr. Saws:
We are pleased to confirm our understanding of the services we are to provide for Mt. Hood Furniture, Inc. for the year ending December 31, 20X3.
We will audit the balance sheet of Mt. Hood Furniture, Inc as of December 31, 20X3 and the related statements of income, retained earnings, and cash flow for the years then ended. The objective of our audit is the expression of an opinion about whether your financial statements are fairly presented, in all material respects, in conformity with generally accepted accounting principles. Our audit will be conducted in accordance with generally accepted auditing standards and will include test of your accounting records and other procedures we consider necessary to enable us to express such an opinion. If we are unable to complete the audit, or are unable to form or have not formed an opinion, we may decline to express an opinion or to issue a report as a result of this engagement.
Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, tests of the physical existence of inventories, and direct confirmation of receivables and certain other assets and liability by correspondence with selected customers, creditors, and banks. At the conclusion of the audit we will require certain written representations from you about the financial statements and related matters.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. Also, we will plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Because of the concept of reasonable...
REEDY AND ABEL CERTIFIED PUBLIC ACCOUNTANTS
Mr. Conrad P. Saws, President
Mt. Hood Furniture, Inc.
80 Fast Lane
Portland, Oregon 97207
Dear Mr. Saws:
We are pleased to confirm our understanding of the services we are to provide for Mt. Hood Furniture, Inc. for the year ending December 31, 20X3.
We will audit the balance sheet of Mt. Hood Furniture, Inc as of December 31, 20X3 and the related statements of income, retained earnings, and cash flow for the years then ended. The objective of our audit is the expression of an opinion about whether your financial statements are fairly presented, in all material respects, in conformity with generally accepted accounting principles. Our audit will be conducted in accordance with generally accepted auditing standards and will include test of your accounting records and other procedures we consider necessary to enable us to express such an opinion. If we are unable to complete the audit, or are unable to form or have not formed an opinion, we may decline to express an opinion or to issue a report as a result of this engagement.
Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, tests of the physical existence of inventories, and direct confirmation of receivables and certain other assets and liability by correspondence with selected customers, creditors, and banks. At the conclusion of the audit we will require certain written representations from you about the financial statements and related matters.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. Also, we will plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Because of the concept of reasonable...