The Following Is the Introductory Paragraph, and the Basis for Qualified

question 6

Essay

The following is the introductory paragraph, and the Basis for Qualified Opinion paragraph for Fast Times Corporation, a non-public company.
Independent Auditor's Report
To the shareholders of Fast Times Corporation
We have audited the accompanying balance sheet of Fast Times Corporation as of September 30, 2012, and the related statements of income, retained earnings, and cash flows for the year then ended, and the related notes to the financial statements.
Basis for Qualified Opinion
We were unable to obtain audited financial statements supporting the company's investment in a foreign affiliate stated at $1,040,000, or its equity in earnings of that affiliate of $501,000, which is included in net income, as described in Note 14 to the financial statements.Because of the nature of the company's records, we were unable to satisfy ourselves as to the carrying value of the investment or the equity in its earnings by means of other auditing procedures.
Required:
Prepare the opinion paragraph for the above audit report.Do not date or sign the report.

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Definitions:

Defined Contribution Pension Plan

A retirement savings plan where an employer, employee, or both make contributions on a regular basis, with future benefits fluctuating based on investment performance.

Pension Expense

The cost incurred by an employer in a given period to fund or fulfill its commitment for employee pensions.

Pension Expense

The total cost to a company for the retirement benefits earned by employees in a given period.

Deferred Compensation

A portion of an employee's income that is deferred to a later date, typically to take advantage of lower tax rates or to fund retirement plans.