Question
Joseph, a public accountant, has been keeping the books for his fathers business, JoPar Tech Ltd., in the evenings, while working with other clients during
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Joseph, a public accountant, has been keeping the books for his fathers business, JoPar Tech Ltd., in the evenings, while working with other clients during the day. Yesterday, Josephs father proudly announced that he had negotiated a loan with the Federal Business Development Bank at favourable rates so that he could purchase $120 000 in new machinery and equipment. Upon reviewing the loan agreement, Joseph discovered that one of the requirements of the loan agreement is that JoPar Tech Ltd. submit financial statements that have been reviewed by a public accountant within 90 days of the fiscal year-end.
Joseph, a public accountant, has been keeping the books for his fathers business, JoPar Tech Ltd., in the evenings, while working with other clients during the day. Yesterday, Josephs father proudly announced that he had negotiated a loan with the Federal Business Development Bank at favourable rates so that he could purchase $120 000 in new machinery and equipment. Upon reviewing the loan agreement, Joseph discovered that one of the requirements of the loan agreement is that JoPar Tech Ltd. submit financial statements that have been reviewed by a public accountant within 90 days of the fiscal year-end.
Required
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Can Joseph complete a review engagement report for JoPar Tech Ltd.? Why or why not?
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What type of engagement can Joseph complete with respect to the financial statements of JoPar Tech Ltd.?
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What would you advise Joseph to do? Why?
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