Identify the Special Purpose Framework Used in Each of the Following

question 19

Essay

Identify the special purpose framework used in each of the following situations.
1.A real estate company reports to its partners on the basis used to complete the income tax return.
2.A company has its financial statements prepared on a price-level adjusted basis as required by its lender.
3.An insurance company reports in compliance with the rules of a state insurance commission.
4.A partnership reports on revenues received and expenses paid.
What modifications must be made to the standard auditor's report for these situations?

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Definitions:

Storytelling

The art of using narrative and tales to convey messages, engage audiences, and evoke responses, widely used in branding and marketing strategies.

Simple

Straightforward or easy to understand, lacking complexity or complications.

Societal Norms

The accepted behaviors, practices, and standards that a society or social group considers normal or appropriate.

Legal

Pertaining to the system of rules that a particular country or community recognizes as regulating the actions of its members and may enforce by the imposition of penalties.