T233-A Auditing Theory Fall 2020 heu & I OWO 2012:09 PM Save HW Score N, 35 pts mework: Chapter 3 HW re: 0 of 1 4 of 5 cm 3-24 (book/static) CPA complete with trades Belony Corporation of and for the year ended December 31, 2011. Poded and ported on the Board for the per year. The forgott arty na el try tomandot nomer information that red not be part of the moon Ein the delicacies in propose Catech Chow MacBook Pro poration as of and for the year ended December 31, 2016. Patel also audited and reported on the Bellamy financial statements for the prior year. Pa me other information.) be part of the auditor's report. on" that need not be part of the auditor's report. column, select the letter corresponding to the explanation (from the list provided) as to why the item is not needed. If you select "Yes" to identify an item th might not be needed in the auditor's report.) X * More Info al statements We have audited the balance sheet and statements of income and retained earnings of Bellamy Corporation as of December 31, 2016. 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. In our opinion, the financial statements referred to above present fairly the financial position of Bellamy Corporation as of December 31, 2016, 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. Patel, CPA (Signed) Print Done oration as of and for the year ended December 31, 2016. Patel also audited and reported on the Bellamy financial statements for the prior year. Patel other information) be part of the auditor's report X " that need not be part of the olumn, select the letter corres might not be needed in the aud More Info ct "Yes" to identify an item that is . statements. Other Information Bellamy is a private corporation and is presenting comparative financial statements. . During 2016, 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 foxed 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, 2015, 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 earings after December 31, 2020. Bellamy has disclosed this in the footnotes to the financial statements. . Print Done as of and for the year ended December 31, 2016. Patel also audited and reported on the Bellamy financial statements for the prior yea formation.) the auditor's report od not be part of the auditor's report. lect the letter corresponding to the explanation (from the list provided) as to why the item is not needed. If you select "Yes" to identify an ite be needed in the audio con * More Info its. Explanation of why information need not be included in the audit report: a. The statement of cash flows is not a required schedule of the financial statements. 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 (book/static) PA, has completed the audit of the financial statements of Bellamy Corporation as of and for the year ended December 31, 2016. Patel also aum uck the icon to view the report.) Click the icon to view the other information.) ements tify and explain any items included in "Other Information" that need not be part of the auditor's report. lain the deficiencies in Patel's report as drafted. irement a. Identify and explain any items included in "Other Information" that need not be part of the auditor's report. any items that you answer "No" to in the "Needed in Auditor's Report?" column, select the letter corresponding to the explanation (from the list provide (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. Yes No ACCT 233-A Auditing Theory Fall 2020 Homework: Chapter 3 HW Score: 0 of 1 pt 4 of 5 (3 complete) -3-24 (book/static) Patel, CPA, has completed the audit of the financial statements of Bellamy Corporation as of and for the year ended December 31, 2016. Patel also audited and rep (Click the icon to view the report.) (Click the icon to view the other information.) Requirements a. Identity 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. Requirement a. Identity and explain any items included in "Other Information that need not be part of the auditor's report. For any items that you answer "No" to in the "Needed Auditor's Report?" column, select the letter corresponding to the explanation (from the list provided) as to why (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 il Auditor's not needed in Report? report Bellamy is a private corporation and is presenting comparative financial statements. . a. b. C. d. e. na