Accounting Systems Neither Dowl Manufacturing nor Ed’s Plumbing and Heating mention in their financial statements that they have an accounting procedures manual.

Dowl sells fabricated steel products nationally. Ed’s plumbing is owned by Ed and his brother and operates locally.

a. Is it safe to assume that neither company has an accounting procedures manual?

b. Which company is likely to have the greater need for an accounting procedures manual? Explain why.

c. What assurances do financial statement users receive if they know a company has an accounting procedures manual and the company follows the policies and procedures that are specified?