As a result of preparing for its first audit, Smythe Company hasbeen scouring its books to make sure everything is ready andproperly calculated for the auditor. During this process, theaccountants discovered that several items were being accounted forusing the cash method which is what the owners of the Company bothunderstand and wanted done. You are one of the accountantsand you know that the cash method is not acceptable for GAAP underwhich the audit will be conducted. Even without knowing thetiming or type of the necessary adjustments, comment on whether youthink these should be treated as errors or changes in estimate andwhat your process should be in doing this analysis. Includeyour conclusion on what to do.