Regional Airlines Limited (RAL) is a regional airline serving as a feeder for one of the national airlines. RAL's aggressive advertising campaign claims that RAL has "the most dependable service in Atlantic Canada."

Ingrid Knorr, the senior partner of Spletts & Toesser (ST), a medium-sized CA firm, has been responsible for the audit of RAL since its incorporation in 1980. Last Friday afternoon, just after the completion of the audit, RAL's general manager had a meeting with Ingrid. The general manager was agitated because the Ministry of Consumer Affairs had demanded that RAL provide support for its advertised claim to have the most dependable service.

The general manager wondered whether ST could issue "some kind of statement" on RAL's service performance. The statement would be used by RAL to support its advertising claims to the Ministry of Consumer Affairs and in its television advertising. He was not very specific about the nature of the engagement and left it to ST to design the approach to assess RAL's claims.

Since this is an unusual engagement, Ingrid asks you, a member of her audit staff, to prepare a memo on what the study would involve and how to report the results. She also wants you to assess the implications for ST of accepting the engagement.

Required Draft the memo requested by the partner.