123 Ontario Inc. 123 Dano Inc. [1230'ij is a private company used by Fred Flinmtone that sells motorized toy vehicles. The company. 1230M has a reputation for providing high-quality products at premium prices. DEEP-H's customers presently consist of small retailers that specialize in highend childrens products. Summarized nancial information for the fiscal year ended December 31, 21321 is provided in Exhibit I. Today is January 23, 222. Mary Smith, a partner in Smith 3: Smith, Chartered Professional Accountants, has called you, CPA into her office to discuss 12301-11". Mary says to you: \"I want you to attend a meeting that I have scheduled with Fred this afternoon. Fred has advised me that he wants us to provide advice regarding a proposal he has received from Bigmart Inc., a large discount retail chain. He also wants us to describe the financial reporu'ng issues pertaining to this proposal, in particular recognition of revenue. In addition, he wants us to evaluate the internal control at 1230M and provide advice about how to improve the internal control. He also needs advice on if the company should purchase a new assembly machine for the company. The assembly machine purchase decision is not related to the Bigmart proposal. As you lmow, we have always issued a review engagement report on GEC's nancial statements. Fred wants us to issue an audit report on (3305 financial statements for the year ended December 31, 2021. BigMart requires audited financial statements to assess the financial soundness of 1230M before it will enter into a contract with the company; and, Fred wants increased assurance that the financial statements for fiscal 3131 are reliable. The company uses ASPE as their basis of accounting.\" You attend the meeting with Fred and notes from the meeting are provided in Exhibit 11. At the meeting, Fred provides you with information pertaining to the Eigmar't Inc. proposal {Exhibit III) and the assembly machine {Exhibit IF]. After the meeting, Mary says to you: \"Please prepare a report for my review that analyzes and responds to the requests of Fred pertaining to the Bigmart Inc. proposal, internal control at 1230M and the acquisition of the new machine. In addition, prepare an audit memo addressing the signicant nancial accounting and audit issues pertaining to the audit of 1230MB financial statements for the year ended December 31, 2U21