Lakeside Case 2 Essay
Abernathy and Chapman
Wallace Andrews Lakeside
1235 Sentry Drive
Richmond, Virginia 66266
Dear Mr. Wallace,
We have researched the issues that were discussed regarding the possibility of Lakeside Company going public and the ramifications this action would have on their desirability as a client. We have also analyzed Lakeside Company’s financial statements to evaluate the possibility of misstatements. Attached, you will find our report discussing these issues.
Please contact us with any further questions.
Cc: Bob Zimmerman
Case Two: New Clients, Legal Liability and Materiality
Table of Contents Executive Summary 4 Discussion Questions 5 Apply Your Research …show more content…
2. If Roger had not consented in having Abernethy talk with to predecessor auditor, what actions would have been open to Abernethy?
Abernathy and Chapman must talk with the predecessor auditor before accepting the engagement. Bearing in mind that Rodgers and the predecessor auditor may have disagreed about accounting principles as well as auditing procedures, it is important that Abernethy have the opportunity to discuss with King and