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You are part of the team auditing ABC Co., a nonissuer. You have been asked to identify your concerns relative to a transaction for the

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You are part of the team auditing ABC Co., a nonissuer. You have been asked to identify your concerns relative to a transaction for the purchase of land that the client has recorded on July 1 of the current audit year. You have prepared a preliminary document addressed to the audit team based on information included in the exhibits above. Review and revise the document as necessary before sending it to the rest of the audit team. To revise the document, click on each segment of underlined text below and select the needed correction, if any, from the list provided. If the underlined text is already correct in the context of the document, select [Origina/ Text] from the list. If removal of the underlined text is the best revision to the document, select [Delete Text] from the list if available. To: Audit Team From: Team Member The following are concerns relative to the land purchase on July 1 : 1. I have personally inspected the land and believe that the greatest risk related to the purchase transaction is most closely related to the existence assertion. 2. A major concern should be that an actual parcel of property was purchased. 3. An issue that we should investigate is why the bank loaned only $2 million for the purchase. 4. If we determine that a qualified opinion must be expressed because this transaction is not fairly recorded. we should identify the member of the board in the opinion if (s)he is the cause of the qualification. 5. To gather the best evidence about the fair value of the land, we should obtain a written confirmation from First Financial Bank that the collateral for the loan is the land. 6. ABC should record an entry for the audit year to debit notes payable. 7. The client should include a note in the financial statements for this transaction specifically because the amount of the transaction was significant

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