The following research question focuses on the audit of Fine Host Corporation (FHC), a Connecticut based company

Question:

The following research question focuses on the audit of Fine Host Corporation (FHC), a Connecticut based company that provided food and beverages concession, catering, and other services in approximately 400 facilities in 38 states. Start by locating and reading SEC Accounting and Auditing Releases 1482 and 1483 related to the audit of FHC.

Required

a. How were the financial statements of FHC misstated?

b. Make a list of the defects in the audit of FHC as it relates to audit sampling. For each defect that you note, suggest an alternative that would have allowed the auditor to follow professional standards.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...

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