The Following Are Two Unrelated Situations

question 82

Essay

The following are two unrelated situations.For each situation,outline possible deviations (if any)from an unmodified auditor's report that may be necessary,and give reasons.State your assumptions.A)Rosebud Ltd.is a construction company that builds and repairs greenhouses for nurseries.An architect does the design and three different small construction companies are used to build the greenhouses.You are concerned that some of the projects that span the April year-end may result in material losses,even though income has been reported in the coming year.Management has refused permission for you to enter construction sites,as they feel that the construction sites will be dangerous and they do not want to be exposed to such liability.B)Save Our Trees is a charitable organization devoted to maintaining national woodland and green space.Fundraising is handled primarily by means of electronic mail and door-to-door canvassing by volunteers.Canvassing volunteers provide receipts at the door using pre-numbered receipts.Donors who give money by email are sent receipts by email.

---

Definitions:

Endocrine Glands

Glands that secrete hormones directly into the bloodstream, regulating processes like growth, metabolism, and mood.

Hormones

Chemical messengers produced by the endocrine glands that regulate various bodily functions by traveling through the bloodstream to tissues or organs.

Bloodstream

is the system of blood vessels within an organism through which the blood circulates, carrying oxygen, nutrients, and waste products to and from various tissues.

Brain Tumor

An abnormal growth of cells within the brain or the central spinal canal, which can be benign (non-cancerous) or malignant (cancerous).