You, CPA, are the controller for Wooden Toys Inc. (WTI), a company that manufactureswooden toys for toddlers. The company prides itself on producing high-quality toys fromsustainable wood sources from well-managed forests.During a meeting, your boss, Anita Pulitzer, CFO, provided details on some accounting issues that were discovered during the recent audit work (Appendix I). She would like you to provide an analysis of these issues, which she will use to corroborate the auditors' proposed adjustments to the financial statements for the year ending December 31, 20X1. WTI reports its financial statements in accordance with AccountingStandards for Private Enterprises (ASPE).Anita also mentions that the auditors provided her with a memo outlining concerns related to several weaknesses with the fixed asset cycle identified during the year-end audit (Appendix II). Anita would like to take this opportunity to improve WTI's processes because she must approach the bank next month to obtain additional financing and would like to prove that WTI is well run. She would like for next year's audit to require no adjustments to the financial statements.Task #1Provide Anita with a memo discussing the accounting issues.

Your response should not exceed 4 pages.

Task #2

Anita would also like you to explain to her the implication of each weakness and provide a recommendation. She wonders if these weaknesses had any impact on the financial accounting errors identified by the auditors.

To prepare this analysis, she asked you to use the following table structure: Weakness

Implication

Recommendation