CPA Report

Furious Styles

ACC/545

January 09, 2011

Instructor: LaToyia Tilley

MEMORANDUM

TO: Nazgrel Darkmoon, CEO

FROM: Furious Styles

DATE: January 09, 2011

SUBJECT: CPA report

The recent acquisition of the subsidiary we have taken control of has been set up as a corporation. I have received your email regarding the aspects of this transaction that you would like to have explained, and will also give you an idea of what the professional responsibilities are for the CPA’s involved. In addition, I will detail the methodology used to determine deferred taxes, the procedures for reporting accounting changes and error corrections, and the rationale behind establishing the subsidiary as a corporation.

At the root of the advantage of using Certified Public Accountants in our examinations are their reputation, independence, and overall competence to provide the required results. CPA’s are highly trained, have very high standards of ethics, and can simply provide a more detailed and thorough service for us. Their ongoing education ensures us that their methods are always up to date, and their professionalism will provide us with accurate and verifiable results that won’t have to be re-checked. Their key function for our needs will be to examine the financial statements of our new subsidiary

Reviewing the financial statements simply isn’t a proper way to get a clear picture of our new subsidiary. In a financial audit, the CPA’s will determine if the financial statements have been prepared in accordance with generally accepted accounting principles. The other objective will be to provide a reasonable basis for expressing an opinion regarding the financial statements as a whole (K2Scpa.com) Audited financial statements come with a CPA’s highest level of assurance, and will also allow the CPA to gain an understanding of this new