Joseph, a public accountant, has been keeping the books for his fathers business, JoPar Tech Ltd., in

Question:

Joseph, a public accountant, has been keeping the books for his father’s business, JoPar Tech Ltd., in the evenings, while working with other clients during the day. Yesterday, Joseph’s father proudly announced that he had negotiated a loan with the Federal Business Development Bank at favourable rates so that he could purchase $120,000 in new machinery and equipment. Upon reviewing the loan agreement, Joseph discovered that one of the requirements of the loan agreement is that JoPar Tech Ltd. submit that have been reviewed by a public accountant within 90 days of the fiscal year end.
REQUIRED
a. Can Joseph complete a review engagement report for JoPar Tech Ltd.? Why or why not?
b. What type of engagement can Joseph complete with respect to the of JoPar Tech Ltd.?
c. What would you advise Joseph to do? Why? Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...