Sally Thompson's Company, Sally's Shoes, Is a Successful Shoe Retail

question 15

Essay

Sally Thompson's company, Sally's Shoes, is a successful shoe retail business with one store. Sally would like to expand to two locations, but the bank has asked for an independent audit before it will provide financing. Sally hires her brother-in-law, George Thompson, to perform the audit. George has experience in auditing non-profit organizations and he decides to perform the audit the same way as his other audits. After completing all the steps of the audit process, George issues an unqualified opinion indicating that he is certain that the company's financial statements contain no misstatements. Comment on any potential problems with George's audit of Sally's Shoes.

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Definitions:

Determination

In developmental biology, determination is the process by which cells become committed to a specific cell fate.

Morphogenesis

The development of the form and structures of an organism and its parts; proceeds through a series of steps known as pattern formation.

Electrical Shock

The physiological reaction or injury caused by electric current passing through the body, potentially resulting in anything from a slight tingling sensation to immediate cardiac arrest.

Cell Division

The process by which a cell divides into two or more cells, a fundamental process for growth, repair, and reproduction in organisms.