Answer the following for question #1

Hi Team, I hope all is well. Sorry I couldn't be there but I have a number of client meetings today and over the next few months that prevent me from being there in person. Prof. Qamar will be working with you throughout the audit to help you reach the right conclusions. Remember this is a new client and we want to keep them a happy but also want to complete an audit in accordance with PCAOB regulations, and not sacrifice audit quality. Our audit firm is subject to PCAOB inspection and we could be inspected at any time including this audit. Regardless our firm is always dedicated to customer service and quality. Also remember to reach out to the prior auditor and review their workpapers from prior year. Technology Inc. is a company founded in 1999. They are a technology company that has thrived in recent years by focusing on products related to physical and IT service. They are part of a larger umbrella organization called Global Technology Group. The parent owns more than 50% of the Stock but the company does has the remaining ownership traded on the NYSE. The company is a new tech company under a new law that allows them not to have an audit of internal controls under SOX (so we will just be performing a FS audit), also the company is currently exempt from paying income taxes but this will expire next year. We should make sure that this has not changed. The CEO, Hamid Abdullah, is a former Google executive a smart guy but also very impatient when it comes to questions from auditors. The CFO, Umar Tarique, is a former Sr. Manager from PwC, also a smart guy and a former colleague; he appreciates us taking a fresh look but also wants us to be efficient. The CEO founded the company with his brother and best friend in the late 1990's. The company sputtered along until 2010 when the company got some big customers like Sears and Tesla. In 2011 The Company was acquired by Global Technology group and became part of the current organization we know. Although it is a partially owned subsidiary the Parent who is located in India is very hands off and management basically runs like an independent company. The BOD are made up of 12 people which include-The CEO, CFO, the CEO's brother Musa Abdullah, and the CEO's father Adam Abdullah. The remaining board members are set by the Parent and a few independent directors elected by shareholders. The Parent owns about 51% and CEO owns about 20% of the company. The company is almost 19 years old but still runs like a start-up in many ways. The manuals and policies haven't been reviewed or changed in 10 years or so (since the financial crisis). They have outsourced payroll to ADP, but they still handle account receivables and sales in house through their website and APP. They have been known to bill customers incorrect amounts, or send bills to the wrong customers sometimes. The company did have a big IT breach a few years ago and recently settled a related lawsuit. The company has 50-100 full time employees and many contractors on a part time basis. The company has a small production facility in the US and another small R&D facility in India. The company shares headquarter space with the parent in NYC near time square. The company purchases PP&E but also makes some unique production parts. The company focuses primarily on corporate accounts but also is trying to grow its consumer business. Frankie Georgiou Partner Queens College Auditors LLP 65-30 Kissena Blvd. Flushing, NY 11367 1) Review the Financial Statements provided to each group andon Blackboard (You may use laptops for this exercise). (You may use laptops for this exercise). [Focus on: a) is the company Profitable b) Does the company have a lot of liabilities c) Are the cash flows positive d) How is the company using its cash e) Read Note 1 to learn about if the company has any parents or subsidiaries f) Read note 1 to understand the products the company sells g) Scan the other notes for any potential related party transactions h) scan the notes for any lawsuits.) Hi Team, I hope all is well. Sorry I couldn't be there but I have a number of client meetings today and over the next few months that prevent me from being there in person. Prof. Qamar will be working with you throughout the audit to help you reach the right conclusions. Remember this is a new client and we want to keep them a happy but also want to complete an audit in accordance with PCAOB regulations, and not sacrifice audit quality. Our audit firm is subject to PCAOB inspection and we could be inspected at any time including this audit. Regardless our firm is always dedicated to customer service and quality. Also remember to reach out to the prior auditor and review their workpapers from prior year. Technology Inc. is a company founded in 1999. They are a technology company that has thrived in recent years by focusing on products related to physical and IT service. They are part of a larger umbrella organization called Global Technology Group. The parent owns more than 50% of the Stock but the company does has the remaining ownership traded on the NYSE. The company is a new tech company under a new law that allows them not to have an audit of internal controls under SOX (so we will just be performing a FS audit), also the company is currently exempt from paying income taxes but this will expire next year. We should make sure that this has not changed. The CEO, Hamid Abdullah, is a former Google executive a smart guy but also very impatient when it comes to questions from auditors. The CFO, Umar Tarique, is a former Sr. Manager from PwC, also a smart guy and a former colleague; he appreciates us taking a fresh look but also wants us to be efficient. The CEO founded the company with his brother and best friend in the late 1990's. The company sputtered along until 2010 when the company got some big customers like Sears and Tesla. In 2011 The Company was acquired by Global Technology group and became part of the current organization we know. Although it is a partially owned subsidiary the Parent who is located in India is very hands off and management basically runs like an independent company. The BOD are made up of 12 people which include-The CEO, CFO, the CEO's brother Musa Abdullah, and the CEO's father Adam Abdullah. The remaining board members are set by the Parent and a few independent directors elected by shareholders. The Parent owns about 51% and CEO owns about 20% of the company. The company is almost 19 years old but still runs like a start-up in many ways. The manuals and policies haven't been reviewed or changed in 10 years or so (since the financial crisis). They have outsourced payroll to ADP, but they still handle account receivables and sales in house through their website and APP. They have been known to bill customers incorrect amounts, or send bills to the wrong customers sometimes. The company did have a big IT breach a few years ago and recently settled a related lawsuit. The company has 50-100 full time employees and many contractors on a part time basis. The company has a small production facility in the US and another small R&D facility in India. The company shares headquarter space with the parent in NYC near time square. The company purchases PP&E but also makes some unique production parts. The company focuses primarily on corporate accounts but also is trying to grow its consumer business. Frankie Georgiou Partner Queens College Auditors LLP 65-30 Kissena Blvd. Flushing, NY 11367 1) Review the Financial Statements provided to each group andon Blackboard (You may use laptops for this exercise). (You may use laptops for this exercise). [Focus on: a) is the company Profitable b) Does the company have a lot of liabilities c) Are the cash flows positive d) How is the company using its cash e) Read Note 1 to learn about if the company has any parents or subsidiaries f) Read note 1 to understand the products the company sells g) Scan the other notes for any potential related party transactions h) scan the notes for any lawsuits.)