Langford & Company, CPAs were approached to report on summary financial statements. The summary financial statements were prepared on a tax basis whereas the complete financial statements were prepared using Generally Accepted Accounting Principles
Langford & Company, CPAs were approached to report on summary financial statements. The summary financial statements were prepared on a tax basis whereas the complete financial statements were prepared using Generally Accepted Accounting Principles
Chapter1: Comprehensive Cases
Section1.1: Enron Corporation
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Transcribed Image Text:Langford & Company, CPAs were approached to report on summary financial statements. The summary financial
statements were prepared on a tax basis whereas the complete financial statements were prepared using Generally
Accepted Accounting Principles
O Langford & Company may perform the engagement because the tax basis is an acceptable other comprehensive basis of
accounting.
Langford & Company may perform the engagement if Langford & Company also performed the audit of the complete financial
statements.
O Langford & Company may perform the engagement if Langford & Company obtained the proper management representation
letter which includes the requirement to notify the auditor of any subsequent events that occurred.
O Langford & Company may not perform the engagement.
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