1) Audit Report We conducted our audit in accordance with the standards of the American Institute of Certified Public Accountants (AICPA). Those standards required that we plan and perform the audits to obtain absolute assurance about whether the financial statements are free from estimations and whether effective internal control over financial reporting was maintained in all material respects.

This is part of an audit report issued for a public company. List the incorrect portions of the audit opinion above and suggest the appropriate corrections.

2) Johnson Corp. is an audit client of the New York office of Mason and Co., CPAs. Mason and Co. has offices in New York, Washington D.C., and Los Angeles. Determine whether each of the following individuals is a covered member, and explain why the individual is/isnt a covered member.

a. Michael Scott is a partner in the DC office of Mason. He does not work on the Johnson audit.

b. Pam Beesly is a first-year staff assistant who works on the Johnson audit.

c. Phyllis Lapin is a partner in the New York office of Mason. She does not work on the Johnson audit.

d. Jim Halpert, a staff auditor who does not work on the audit, owns an immaterial amount of stock of Johnson Corp.

e. Andy Bernard, Los Angeles office partner, provides tax service to Johnson.