Module A Project- Lillian Kimmons
A.51 Erroneous Reporting on Interim Financial Information:
a) Erroneous portions found: * There should be a paragraph describing management’s responsibility with the internal control responsibility immediately following the introductory paragraph. * The report does not point out that a review is considerably less in scope than an examination in accordance with normally established auditing standards. The purpose of which is the expression of an opinion concerning the financial statements as a whole. * Knowledge of a company’s system for preparing information in not necessary in an interim review report. * There is no disclaimer of opinion in the scope paragraph. * The standard audit opinion and final paragraph appear to be similar if not identical. The final paragraph should be focusing on the “negative assurance” and should not be identical to the audit opinion that Baker & Baker should not have been giving. * The date of the review should be dated later than March 31, 2013 due to the fact that the end of the interim review work is later than the date specified in the report.

b) Rewrite the report
Report of Independent Auditor’s Review
The Board of Directors and Stockholders
Micro Mini Company
We have reviewed the balance sheet of Micro Mini Company at March 31, 2013. The related statement of income for the three-month period ended on March 31, 2013 and the statement of cash flow for the three-month period ended on March 31, 2013.
Management responsibilities in this company are the preparation and presentation of the interim financial information that is in accordance with accounting principles in the United States of America. These responsibilities include: the design, implementation, and maintenance of internal control adequate to provide a basis reasonable for the preparation of interim financial information in accordance with the applicable financial reporting framework.
Our responsibility is to perform a review in accordance with auditing standards accepted in the United States of America applicable of reviews of interim financial information. A review of interim financial information consists of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is considerably less in scope than an audit conducted in accordance with auditing standards generally accepted in the United States of America, the objective of which is the expression of an opinion regarding the financial information. Based on our review, we are not aware of any material changes that should be made to the accompanying interim financial statements in order for them to be in accordance with accounting principles generally accepted in the United States of America. Baker & Baker, CPAs April 15, 2013

A. 53 Internet Exercise – CPA Web Trust a) What is Web Trust? *Web Trust is a program designed for certified public accountants to evaluate websites to ensure that its web transactions meet specific standards in three key areas: Information protection, Business practices, and Transaction integrity. b) Why is Web Trust needed? * It is needed because internet shoppers are concerned about protecting their personal information and making safe internet transactions that are processed efficiently and accurately. Web Trust gives shoppers the confidence that they need in the sites that they visit. c) How does an Internet user know that a website has received the Web Trust service? * The website will have the CPA Web Trust seal on their site. d) Where can a person obtain copies of the Trust service principles? * A copy of the principles can be located on the CPA Web Trust website.