The purpose of this assignment is to assess your ability to evaluate each scenario and then determine the appropriate audit/assurance reports. The ability to evaluate scenarios such as this and to then apply your technical knowledge to the scenario is critical in the public accounting profession. Please submit your answers to the scenarios provided below through a word document in Moodle. Indicate your response with red font. Each scenario response should contain no less than 3-5 sentences.

e. During the audit of Corie Bakery Equipment, you found that a material amount of inventory had been excluded from the company's financial statements. After discussing this problem with management, you become convinced that it was an unintentional oversight. Management appropriately corrected the error prior to your finalization of field work.

f. John Rock, CPA, holds 10 percent of the stock in Rothenburg Construction Company. The board of directors of Rothenburg asks Rock to conduct its audit. Rock completes the audit and determines that the financial statements present fairly in accordance with generally accepted accounting principles.

g. Roorim Savings and Loan's financial condition has been deteriorating for the last five years. Most of its problems result from loans made to real estate developers in Saint Johns County. Your review of the loan portfolio indicates that there should be a major increase in the loan-loss reserve. Based on your calculations, the proposed writedown of the loans will put Ramamoorthi into violation of the state's capital requirements. The client refuses to make the adjustment or to disclose the possible going concern issue in the notes to the financial statements.