You are a CPA retained by the manager of a cooperative retirement village to do...
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Accounting
You are a CPA retained by the manager of a cooperative retirement village to do "write-up work". You are expected to prepare unaudited financial statements with each page marked "unaudited" and accompanied by a disclaimer of opinion stating no audit was performed. In performing the work, you discover that there are no invoices to support a claim for a $25,000 disbursement. The manager informs you that all the disbursements are proper. What should you do?
Include the unsupported disbursements in the statements since you are not performing an audit and management gave you the figures
Notify the owners that some of the claimed disbursements are unsupported and withdraw if the situation is not satisfactorily resolved
Obtain from the manager a written statement that you informed him of the missing invoices and include his assurance that the disbursements are proper
Submit the expected statements but omit $25,000 of unsupported disbursements without consulting management
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