EPM,Inc,Is a Private Manufacturing Company with a Calendar Year-End

question 39

Essay

EPM,Inc.,is a private manufacturing company with a calendar year-end.Their financial statements include a balance sheet,a statement of income,statement of cash flows,and statement of stockholders' equity.For the most recent audit,Harrington and Perry,LLP,audited the 2015 and 2016 financial statements.The auditors completed all significant fieldwork on March 5,2017 and issued the audit report on March 16,2017.
Required:
Consider all the facts given and write the standard unmodified opinion audit report,including all eight sections of the report.

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Definitions:

Merchandise Purchases Budget

A financial plan that estimates the cost of inventory a business needs to buy to meet its sales goals.

Master Budget

A comprehensive financial planning document that includes all of the smaller, individual budgets within a company, projecting all of its activities over a fiscal year.

Sales Budget

A detailed estimate of the sales revenue a company expects to earn in a specific period, including both volume and price.

Merchandise Purchases

Transactions related to buying inventory for resale, typically in a retail or wholesale business setting.