Donna Prima,CPA,was Engaged to Review the Unaudited Financial Statements of Rooster

question 33

Essay

Donna Prima,CPA,was engaged to review the unaudited financial statements of Rooster Restaurants Inc.,a nonpublic company.During her review,Donna found that Rooster had not capitalized leases as required by GAAP.The result was so material,that Donna modified the standard review report to state that "the financial statements are not in conformity with GAAP."
Required:
Is Donna's report in accordance with professional standards? If not,what should she have done under the circumstances? Explain.

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Definitions:

Excessive Personalization

The overemphasis on tailoring services or communications to the individual preferences to a point that may be deemed unnecessary or intrusive.

Non-Work References

Mentions or allusions to interests, activities, or subjects that are not related to one's professional life or responsibilities.

English-Only Policy

A rule or regulation within an organization requiring the exclusive use of the English language for communication.

Social Norm

Expected standards of conduct within a society or group, which guide behavior of its members.