Cascadia Lumber (Cascadia) is a privately owned company. Cascadi

a wants to expand its

business and has approached the National B

ank for a loan.

National B

ank has agreed that

because Cascadia can provide reliable security for the loan, an exte

rnal audi

t will not be

required;

however, the bank's manager has

insisted that Cascadia hire a firm of professional

accountants to examine Cascadia's financial records and provide some level of assurance.

Answer the following three questions:

a)

What type of assurance engagement is required? Explain your answer.

b)

Assume that Cascadia contracts the firm Little and Sharpe, CPAs to perform the services

that you have suggested in part a). Wh

at is the title of the report or

communication that

Little and Sharpe will prepare?

c)

Identify the type of procedures that Little a

nd Sharpe, CPAs will be required to conduct

when providing the services suggested in part a