2- When a CPA firm completes an nudit of a nonpublic business and issues a report, does it express an opinion on the client's accounting records, financial statementsor both? Give reasons? A-Reed, CPA, accepted an engagement to audit the financial statements of Smith Company. Reed's discussions with Smith's new management and the predecessor ouditor indicated the possibility that Smith's financial statements may be misstated due to the possible occurrence of errorsfraudand illegal acts? B-Joe Rezzo, a college student majoring in accounting, helped finance his education with a part-time job maintaining all accounting records for a small business. White Company, located near the campus. Upon graduation, Rezzo possed the CPA examination and joined the audit staff of a national CPA firm. However, he continued to perform all accounting work for White Company during his "leisure time" Two years later, Rezzo received his CPA certificate and decided to give up his part-time work with White Company He notified White that he would no longer be available after preparing the year end financial statements preparing the year end financial statements On January 7Rezzo delivered the annual financial statements as his final act for White Company. The owner then made the following request: I am applying for a substantial bank loon, and the bank loan officer insists upon getting audited financial statements to support my loan application. You are nowo CPA, and you know everything that's happened in this company and everything that's included in these financial statements and you know they give a fair picture, I would appreciate it if you would write out the standard audit report and attach it to the financial statements. Then I'll be able to get some fast action on my loan application." a. Would Rezzo be justified in complying with White's request for an auditor's opinion? Explain. b. If you think Rezzo should issue the audit report do you think he should first perform an oudit of the company despite his detailed knowledge of the company's affairs? Explain. c. If White had requested an audit by the national CPA firm for which Rezzo worked, would it firm to