Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
please help You have been asked by the audit department to do some research in light of the current Covid 19 crisis. The firm audits
please help
You have been asked by the audit department to do some research in light of the current Covid 19 crisis. The firm audits several restaurant and hospitality venues (such as sporting venues). Most of these clients were able to take advantage of the CARES act and borrowed payroll funds. Most of these clients have a year ended June 30. Additionally, Most of these restaurants have taken a second PPP loan as well. The audit department would like you to research what if anything, they are required to convey regarding to the current events. They would like to know the proper treatment for the loan, loan payback and loan forgiveness. All the client's had positive equity at year end but some were stronger than others. Utilizing the Codification, the AICPA website and other trade sources, determine the requirements for additional items to be recorded, possible disclosures, and affects on the audit report. You will also need to address these issues for the years ended 2020 and 2021 as the clients are producing comparative financial statements. Draft an accounting issues memorandum that the audit department can use as a source As such, this memo should address the requirements as delineated by size of client. You should use the format presented in the Cambridge bookStep by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started