The following questions were brought up by Vera Topham during the initial client meeting. Please draft a response and include it in your memo with the financial statements. 1. Our controller really left us in a lurch with that lottery win. I had no idea that the records needed adjusting. Can you tell me what these adjustments are for and how to they fit into this "accounting cycle" thing that you keep bringing up? 2. When I went in to sign the letter of guarantor for my sister the bank wanted to know what accounting standards our statements are prepared under. I once heard the controller mention ASPE; so, that's what I told them. Was that correct? What other standards are there, and should we use them? 3. On the topic of accounting standards, what is the point for a small operation like mine to have financial statements? I know what is going on day-to-day, but would anyone else want to see these things?