Prentice Manufacturing Limited is a Canadian- controlled public company that issued shares to the public for the first time in 1980. The shares are listed on both Canadian and U.S. stock exchanges. A1 Prentice, the president of the company, approaches Don Migwam, a public accountant, who is currently performing the interim audit of the company. The company has decided to issue interim financial statements for the first time.

Mr. Prentice would like to publish the interim results following Migwam's review and has asked him to do whatever is necessary to give his "certification" and suggest whatever changes are necessary to present these interim statements in accordance with generally accepted accounting principles. He informs Migwam that the three-month statement of earn¬ ings will also be circulated to minority shareholders in the United States and will therefore likely have to conform to the American accounting pronouncements (AICPA, FASB) as well as Canadian ones.

Required Assume the role of Don Migwam, a public accountant. Out¬ line the following:

a. The points you would include in a letter to Mr. Prentice on your responsibility with respect to the interim financial statements

b. The nature of any work you would have to perform in this regard

(CICA adapted)