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As
the CPA for a large organization, you were asked by your manager to provide
information to outside CPAs who are examining a subsidiary that has been set up
as a corporation. As part of their review, the CPAs have asked you to provide
them with the following explanations:
·
The methodology used to determine deferred taxes
·
The procedures for reporting accounting changes and error
corrections
·
The rationale behind establishing the subsidiary as a
corporation
Prepare
your response to the three questions. Before submitting your response, your
manager would like to know a little bit more about the request. She has asked
you to tell her what your professional responsibilities are as a CPA, and the
difference between a review and an audit.
You
should provide draft responses to the above questions as well as providing your
manager with a summary of your responsibilities in one document (no more than
1,050 words).
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