Kindly answer the above question ASAP. Thank you.
LEARNING OBJECTIVES After completing and discussing this case you should be able to [1] Understand the role and timing o [3] Evaluate proper accounting treatment for attorney responses to the auditor material uncertainties [2] Interpret information contained in an attorney's [4] Identify the correct audit report in light of response letter varying circumstances INTRODUCTION Murchison Technologies, Inc. recently developed a patient-billing software system that it markets to physicians and dentists. Jim Archer and Janice Johnson founded the company in Austin, Texas five years ago after working at IBM for more than 15 years. Jim worked as a software programmer and Janice worked as a sales representative, frequently calling on stand-alone medical practices. Together, they identified a need for software to help physician and dental offices track charges for patient services provided by doctors and their staff. With the initial backing of three local venture capitalists, they left IBM, created Murchison Technologies, and devoted their full-time efforts to the development of the billing system software. For more than three years, they worked on developing the software. After extensive pilot testing, the company shipped its first product to customers in early 2012 . Sales have been surprisingly strong for the product, which is marketed as MEDTECH Software. Feedback from physicians and dentists has been extremely positive. Most note that billing clerks and office staff find the system quite flexible in tracking numerous types of services for large numbers of patients. Most are pleased with the ability to customize system features for their unique practice needs. Another key to the product's success is the relative cost of the software and the minimal upgrades required of the office microcomputers and networks to operate the software. The company has gradually added employees to its staff. Currently, Murchison employs about 60 people, including software programmers who continually update the software for emerging technological developments. Janice serves as chief executive officer (CEO), and Jim serves as president. While both serve on the board of directors, they ultimately are accountable to the board, which also includes representatives from the three venture capitalists and two local bankers who financed company expansions through commercial loans issued three years ago. Murchison continues to be privately held. [1] Review the requirements in the Accounting Standards Codification (ASB) that address the accounting for contingencies. Describe the three ranges of loss contingencies outlined in the accounting standards and summarize briefly the accounting and disclosure requirements for each of the three ranges. LEARNING OBJECTIVES After completing and discussing this case you should be able to [1] Understand the role and timing o [3] Evaluate proper accounting treatment for attorney responses to the auditor material uncertainties [2] Interpret information contained in an attorney's [4] Identify the correct audit report in light of response letter varying circumstances INTRODUCTION Murchison Technologies, Inc. recently developed a patient-billing software system that it markets to physicians and dentists. Jim Archer and Janice Johnson founded the company in Austin, Texas five years ago after working at IBM for more than 15 years. Jim worked as a software programmer and Janice worked as a sales representative, frequently calling on stand-alone medical practices. Together, they identified a need for software to help physician and dental offices track charges for patient services provided by doctors and their staff. With the initial backing of three local venture capitalists, they left IBM, created Murchison Technologies, and devoted their full-time efforts to the development of the billing system software. For more than three years, they worked on developing the software. After extensive pilot testing, the company shipped its first product to customers in early 2012 . Sales have been surprisingly strong for the product, which is marketed as MEDTECH Software. Feedback from physicians and dentists has been extremely positive. Most note that billing clerks and office staff find the system quite flexible in tracking numerous types of services for large numbers of patients. Most are pleased with the ability to customize system features for their unique practice needs. Another key to the product's success is the relative cost of the software and the minimal upgrades required of the office microcomputers and networks to operate the software. The company has gradually added employees to its staff. Currently, Murchison employs about 60 people, including software programmers who continually update the software for emerging technological developments. Janice serves as chief executive officer (CEO), and Jim serves as president. While both serve on the board of directors, they ultimately are accountable to the board, which also includes representatives from the three venture capitalists and two local bankers who financed company expansions through commercial loans issued three years ago. Murchison continues to be privately held. [1] Review the requirements in the Accounting Standards Codification (ASB) that address the accounting for contingencies. Describe the three ranges of loss contingencies outlined in the accounting standards and summarize briefly the accounting and disclosure requirements for each of the three ranges
