Patel, CPA, has completed the audit of the financial statements of Bellamy Corporation as of and for the year ended December 31, 2019. Patel also audited and reported on the Bellamy financial statements for the prior year. Patel drafted the following report for 2019. (Click the icon to view the report.) Click the icon to view the other information.) Requirements a. Identify and explain any items included in "Other Information that need not be part of the auditor's report. b. Explain the deficiencies in Patel's report as drafted (Click the icon to view the list of possible explanations for why an item might not be needed in the auditor's report.) We have audited the balance sheet and statements of income and retained earnings of Bellamy Corporation as of December 31, 2019. In our opinion, the financial statements referred to above present fairly the financial position of Bellamy Corporation as of December 31, 2019, and the results of its operations for the year then ended in conformity with generally accepted auditing standards, applied on a basis consistent with those of the preceding year. We conducted our audit in accordance with generally accepted accounting standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of misstatement. We believe that our audits provide a reasonable basis for our opinion. Patel, CPA (Signed) 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. ems Pate e list 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. oratid ort. nclu l's of p 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. un an Panel dis duo Patel, CPA, has completed the audit of the financial statements of Bellamy Corporation as of and for the year ended December 31, reported on the Bellamy financial statements for the prior year. Patel drafted the following report for 2019 (Click the icon to view the report.) (Click the icon to view the other information.) Requirements a. Identify and explain any items included in "Other Information that need not be part of the auditor's report, b. Explain the deficiencies in Patel's report as drafted. (Click the icon to view the list of possible explanations for why an item might not be needed in the auditor's report.) Needed in Explanation if Auditor's not needed in Report? report . Bellamy is a private corporation and is presenting comparative financial statements Click to select your answer(s) and then click Check Answer Yes No 5 parts remaining Clear All Check Answer Patel, CPA, has completed the audit of the financial statements of Bolamy Corporation as of and for the year ended December 31, 2019. Patel also audited and Do Homew reported on the Bellamy financial statements for the prior year. Patel drafted the following report for 2019 (Click the icon to view the report) Click the icon to view the other information) 8 Take a Quit Requirements b. a. Identify and explain any items included in "Other Information that need not be part of the auditor's report b. Explain the deficiencies in Patel's report as drafted (Click the icon to view the list of possible explanations for why an item might not be needed in the auditor's report) d C Needed in Expl Auditor's not Report? nila Bellamy is a private corporation and is presenting comparative financial statements Patel, CPA, has completed the audit of the financial statements of Bellamy Corporation as of and for the year ended December 31, 2019. Patel also audited and reported on the Bellamy financial statements for the prior year. Patel drafted the following report for 2019. (Click the icon to view the report.) Click the icon to view the other information.) Requirements a. Identify and explain any items included in "Other Information that need not be part of the auditor's report. b. Explain the deficiencies in Patel's report as drafted (Click the icon to view the list of possible explanations for why an item might not be needed in the auditor's report.) We have audited the balance sheet and statements of income and retained earnings of Bellamy Corporation as of December 31, 2019. In our opinion, the financial statements referred to above present fairly the financial position of Bellamy Corporation as of December 31, 2019, and the results of its operations for the year then ended in conformity with generally accepted auditing standards, applied on a basis consistent with those of the preceding year. We conducted our audit in accordance with generally accepted accounting standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of misstatement. We believe that our audits provide a reasonable basis for our opinion. Patel, CPA (Signed) 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. ems Pate e list 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. oratid ort. nclu l's of p 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. un an Panel dis duo Patel, CPA, has completed the audit of the financial statements of Bellamy Corporation as of and for the year ended December 31, reported on the Bellamy financial statements for the prior year. Patel drafted the following report for 2019 (Click the icon to view the report.) (Click the icon to view the other information.) Requirements a. Identify and explain any items included in "Other Information that need not be part of the auditor's report, b. Explain the deficiencies in Patel's report as drafted. (Click the icon to view the list of possible explanations for why an item might not be needed in the auditor's report.) Needed in Explanation if Auditor's not needed in Report? report . Bellamy is a private corporation and is presenting comparative financial statements Click to select your answer(s) and then click Check Answer Yes No 5 parts remaining Clear All Check Answer Patel, CPA, has completed the audit of the financial statements of Bolamy Corporation as of and for the year ended December 31, 2019. Patel also audited and Do Homew reported on the Bellamy financial statements for the prior year. Patel drafted the following report for 2019 (Click the icon to view the report) Click the icon to view the other information) 8 Take a Quit Requirements b. a. Identify and explain any items included in "Other Information that need not be part of the auditor's report b. Explain the deficiencies in Patel's report as drafted (Click the icon to view the list of possible explanations for why an item might not be needed in the auditor's report) d C Needed in Expl Auditor's not Report? nila Bellamy is a private corporation and is presenting comparative financial statements