Flappers, a restaurant located in Birmingville, has hired their auditors, Bud's Accounting Firm, to attest to the following assertion: "Our chicken wings are world famous!" Bud's Accounting Firm accepted the engagement mostly because their partners believe that Flappers might use the attestation to increase their sales of chicken wings and, consequently, Bud's will eventually see a higher audit fee.

Given the ease with which Bud's felt they could establish the reach of Flappers' chicken wing fame, and to save money, Bud's skipped over the majority of the planning phase and proceeded directly to their substantive tests. Those tests are as follows:

- Using high school students who needed the summer work, Bud's conducted a telephone poll of randomly selected names from a database provided by the Chamber of Commerce that lists people who have visited Birmingville within the past several months. The question was, "Have you ever heard of Flappers' chicken wings?"

- The daughter of one of the partners asked people coming out of a shopping mall in the nearby city of Mums whether they had ever heard of Flappers' chicken wings.

- Hotel clerks were offered \(\$ 1.00\) per person for signed statements from their out-oftown guests stating that they had heard of Flappers' chicken wings.

Once all the data was collected, the partners of Bud's Accounting Firm found, not surprisingly, that many people from all over the world had heard of Flappers' chicken wings. Based on the criterion that at least one person from 25 states and five foreign nations had to have responded affirmatively to the poll, the partners concluded that Flappers' chicken wings were, in fact, "world famous." Their report follows:

Discuss the primary ways that this engagement violates attestation standards. Be specific.

Transcribed Image Text:

Bud's Accounting Firm To whom it may concern: We hereby attest to the assertion that Flappers' chicken wings are "world famous." Bud Hammer, CPA