Yiot. Yoar Patel drahted the folousing report tor 2019 (Crick tre icion to yimw the other rifortiation) Requirements b. Explast the octiciencies in Paners teport an drafted. Explanation of why information need not be included in the audit report: a. Stating the type of corporation and presenting comparative financial statements are not standard requirements in the auditor's report. 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. - Bellamy is a private corporation and is presenting comparative financial statements. - During 2019, 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 matetial, but not pervasive, to the financial statements. Unfortunately, Patel was not able to perform aternative procedures to support the existence of the receivables. - Bellamy Corpotation is the delendant in litigation where there is a reasonable possibility that Belimy may be required to pay a substantial amount of cash, which might require the sale of certain fixed assets. Because management does not want to provide any information that the ptantifi might use against Bellamy, the case is not discussed in the financial statements - Bellarny issued dehentures on January 31,2018 , in the amount of $10 million. The funds obtained from the issuance were used to tinance the expansion of plant facilities, The debenture agreethent tesinces the payment of future cash dividends to earnings after December 31,2023 . Bellarny has disclosed this in the footnotes to the financal statements 2. The opition paragraph ncudes the worts "yereraly scetcted audteng standants" raher ital 2. The coinion sherid be quilficd rather than being unmestifed. resenititaty dife of maktria mistiatement