Case #2 Kute Kitties Inc. (KKI) is a private corporation and was established by the Simpson family in 2003 as a pet store. The Simpson family used to be involved in the operations of KKI but in order to spend more time together as a family they hired a CEO (Bob Puppy) and Controller (Sara Bird) five years ago. When Bob and Sara signed on, KKI agreed to pay them each a bonus which is based on net income before taxes each year. Bob and Sara handle everything in the day to day operations of the company, but the Simpson family (John, Julia, Jacob and Jessie) make up the entire Board of Directors. Bob and Sara ensure that they provide updates to the Board during their quarterly meetings. KKI have chosen to follow IFRS. John, Julia, Jacob and Jessie want to make sure that everything in KKI is still running smoothly, so they have hired the accounting firm of Arizona and Associates to review some information and provide them with an analysis. You are a staff