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:

Negative Reinforcer

A stimulus whose removal after a particular behavior increases the likelihood of that behavior occurring again in the future.

Pleasant Stimulus

A pleasant stimulus is any event, object, or situation that produces a positive emotional response or feeling of enjoyment.

Withdrawal

Symptoms that occur after cessation or reduction in intake of a substance that the body has become dependent upon, like drugs or alcohol.

Cognitive Processes

Mental activities involved in acquiring, processing, storing, and applying information, such as perception, memory, and reasoning.