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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