Review Indigo Books and Music Inc.'s (Indigo's) 2014 annual report, given in Appendix A at the end of this book and on MyAccountingLab. Answer the following questions about Indigo's internal controls and cash position:
1. What is the name of Indigo's outside auditing firm? What is the date of the annual report? Who is the president of Indigo Books and Music Inc.?
2. Who bears primary responsibility for the financial statements? How can you tell?
3. Who bears primary responsibility for internal controls?
4. Examine the independent auditor's report. What standard of auditing did the outside auditors use in examining Indigo's financial statements? By what accounting standards were the statements evaluated?
5. What are cash equivalents?
6. By how much did Indigo's cash position change during fiscal 2014?