e ments of my Corporation of and for the year ended December 31, 2018 P u ted and reported on the Bellamy financial statements for the Patel CPA has completed the audit of the financ prior year Palol drafted the following report for 2019 (click the icon to view the report) Click the icon to view the other information Requirements a. Identity and explain any forms included in Other information that need not be part of the auditor's report b. Explain the deficiencies in Patel's report as drafted Nooded in Auditor's Report? Explanation if not needed in report Bellamy is a private corporation and is presenting comparative financial statements During 2019, Bellamy acquired Stockard Inc. and the effects of that transaction are reflected in the current year financial statements. Information about this transaction is disclosed in footnote 12 Patel was unable to perform normal accounts receivable confirmation procedures for accounts that are material, but not pervasive, to the financial statements. Unfortunately, Patel was not able to perform alternative procedures to support the existence of the receivables Bellamy Corporation is the defendant in litigation where there is a reasonable possibility that Bellamy may be required to pay a substantial amount of cash, which might require the sale of certain fixed assets. Because management does not want to provide any information that the plaintiff might use against Bellamy, the case is not discussed in the financial statements Bellamy issued debentures on January 31, 2018, in the amount of $10 million. The funds obtained from the issuance were used to finance the expansion of plant facilities. The debenture agreement restricts the payment of future cash dividends to earnings after December 31, 2023. Bellamy has disclosed this in the footnotes to the financial statements * More Info Explanation of why information need not be included in the audit report: a. Stating the type of corporation and presenting comparative financial statements are not standard requirements in the auditor's report. b. There would be no requirement to include an explanatory paragraph that highlights any recent acquisitions that are disclosed in the financial statements. c. The fact that normal receivable confirmation procedures were not used should not be disclosed since the auditor was able to satisfy him or herself through alternative audit procedures. d. The lawsuit need not be discussed in the report since it has been included in a footnote. e. Patel may or may not choose to add an explanatory paragraph about the issuance of the debentures, which is disclosed in the footnotes. There would be no requirement to include that as an explanatory paragraph. Print Done Requirement. Explain the decencies in P amport as d e Identity which of the following are deficiencies in Patel's report as we apply) 1. 2 The opinion paragraph includes the words "generally accepted auditing Standards accounting principles generally coated in the United States of America her than the phrase The basis for opinion paragraph nods to be expanded to be a p art and has funded the responses in accordance with relevant i n the sentenced to obtaining ro l e assurance should be induded in a sp e cionador responsibilities The opinion paragraphs that accounting p oles were consistent with i n the prior year. The on per should make no roterence to consistency 4 The balance sheet of a cid whereas the income statement and the statement of retained congs are for a period of time. The introductory paragraph should identify the period of time alone There is no mention in the report that Bellamy is a private corporation ES There is no auditor's chat f r ance and see o pont o the con conducting and in accordance with GAAS 7. The audit report is neither addressed nor dated and it does not contain a ste There are compative statements, but the report Identities and deals with only the current year's and statements. An opinion must also be included for the prior period financial statements 10. There is no mention in the report that Bellamy Corporation is a defendantin alation 12. The opinion paragraphe s the regured phase, inal material respects." 9. There is no separate management responsibly soon that are the responses of men n t 11. The word material is excluded from the statement that should be part of the auditor's responsibility free of enement 13. Additional paragraphs) should be included that desorb the motion on the sc a led accounts receivable and the re to include disclosure of the contingency related to pending i n 15. The opinion should be qualified her than being unmodified The made in accordance with our standard general copied in the ne Ancher than any pod conting Standard eds of e ments of my Corporation of and for the year ended December 31, 2018 P u ted and reported on the Bellamy financial statements for the Patel CPA has completed the audit of the financ prior year Palol drafted the following report for 2019 (click the icon to view the report) Click the icon to view the other information Requirements a. Identity and explain any forms included in Other information that need not be part of the auditor's report b. Explain the deficiencies in Patel's report as drafted Nooded in Auditor's Report? Explanation if not needed in report Bellamy is a private corporation and is presenting comparative financial statements During 2019, Bellamy acquired Stockard Inc. and the effects of that transaction are reflected in the current year financial statements. Information about this transaction is disclosed in footnote 12 Patel was unable to perform normal accounts receivable confirmation procedures for accounts that are material, but not pervasive, to the financial statements. Unfortunately, Patel was not able to perform alternative procedures to support the existence of the receivables Bellamy Corporation is the defendant in litigation where there is a reasonable possibility that Bellamy may be required to pay a substantial amount of cash, which might require the sale of certain fixed assets. Because management does not want to provide any information that the plaintiff might use against Bellamy, the case is not discussed in the financial statements Bellamy issued debentures on January 31, 2018, in the amount of $10 million. The funds obtained from the issuance were used to finance the expansion of plant facilities. The debenture agreement restricts the payment of future cash dividends to earnings after December 31, 2023. Bellamy has disclosed this in the footnotes to the financial statements * More Info Explanation of why information need not be included in the audit report: a. Stating the type of corporation and presenting comparative financial statements are not standard requirements in the auditor's report. b. There would be no requirement to include an explanatory paragraph that highlights any recent acquisitions that are disclosed in the financial statements. c. The fact that normal receivable confirmation procedures were not used should not be disclosed since the auditor was able to satisfy him or herself through alternative audit procedures. d. The lawsuit need not be discussed in the report since it has been included in a footnote. e. Patel may or may not choose to add an explanatory paragraph about the issuance of the debentures, which is disclosed in the footnotes. There would be no requirement to include that as an explanatory paragraph. Print Done Requirement. Explain the decencies in P amport as d e Identity which of the following are deficiencies in Patel's report as we apply) 1. 2 The opinion paragraph includes the words "generally accepted auditing Standards accounting principles generally coated in the United States of America her than the phrase The basis for opinion paragraph nods to be expanded to be a p art and has funded the responses in accordance with relevant i n the sentenced to obtaining ro l e assurance should be induded in a sp e cionador responsibilities The opinion paragraphs that accounting p oles were consistent with i n the prior year. The on per should make no roterence to consistency 4 The balance sheet of a cid whereas the income statement and the statement of retained congs are for a period of time. The introductory paragraph should identify the period of time alone There is no mention in the report that Bellamy is a private corporation ES There is no auditor's chat f r ance and see o pont o the con conducting and in accordance with GAAS 7. The audit report is neither addressed nor dated and it does not contain a ste There are compative statements, but the report Identities and deals with only the current year's and statements. An opinion must also be included for the prior period financial statements 10. There is no mention in the report that Bellamy Corporation is a defendantin alation 12. The opinion paragraphe s the regured phase, inal material respects." 9. There is no separate management responsibly soon that are the responses of men n t 11. The word material is excluded from the statement that should be part of the auditor's responsibility free of enement 13. Additional paragraphs) should be included that desorb the motion on the sc a led accounts receivable and the re to include disclosure of the contingency related to pending i n 15. The opinion should be qualified her than being unmodified The made in accordance with our standard general copied in the ne Ancher than any pod conting Standard eds of