Part 1: Assume that you examined the financial statements of the Nelson Company in accordance with GAAS and were satisfied with your findings. Required:
Would the fact that the company had a loan (of substantial amount to the Nelson Company) payable to a loan company of which your brother was principal stockholder have any effect on your auditor's opinion? Discuss.
Part II: Your son, aged 16 , owns 100 shares of the 50,000 shares of the Neison Company common stock outstanding at the balance sheet date

Required:
Would this fact have any effect on your auditor's opinion? Discuss.