worry, it you go along nobody will find ou evaluation. John also says that Robert is very members of the fir di highly regarded y n and is likely to be promoted to manager in the near future. Required a. Is it ethical for Barb b. Use the six-step ara to work hours and not charge them to the client? ep approach outlined in this chapter to resolve this ethical out dilemma . Case 17-3 Types of Disclosure Lancaster Electronics produces componen nd phonographic systems. In connection with his examination tements for the year ended December 31, 2014, Don Olds, weeks ago. Mr. Olds is now evaluating the signifi the following items before preparing his auditor's report. Except as noted television setsuce electronic components for sale to manufacturers of ra- CPA, completed fieldwork two ese items has been disclosed in the financial statements or footnotes 1. Recently, Lancaster interrupted its policy of paying cash dividends quarterly to its stockholders. Dividends were paid regularly through 2012 di scontinued for all of 2013 to finance equipment for the company's new and resumed in the first quarter of 2014. In the annual report, end policy is to be discussed in the president's letter to stockholders. year loan agreement, which the company entered into three years plant, divid 2. A 10- ago, provides that dividend payments may not exceed net income earned after ta earnings at the date of the loa through December 31, 2014 and auditor assigned to this review concluded that there was no retained earnings restriction at December 31, 2014 xes subsequent to the date of the agreement. The balance of retained , net income after taxes has totaled $360,000, cash dividends have totaled $130,000. Based on these data, the staff The company's new manufacturing plant building, which cost $600,000 and has an estimated life of 25 years, is leased from the Sixth National Bank at an annual rental of $100,000. The company is obligated to pay property