Accounting

8-29 a. First, the minutes of each meeting refer to the minutes of the previous meeting. The auditor should also obtain the next year’s minutes, probably for February 2010, to make sure the previous minutes referred to were those from September 16, 2009.

Additionally, the auditor will request the client to include a statement in the client representation letter stating that all minutes were provided to the auditor.

b.

|INFORMATION RELEVANT TO 2009 AUDIT |AUDIT ACTION REQUIRED |

|February 15: | |

|1. Approval for increased distribution costs |During analytical procedures, an increase of $500,000 should be expected for |

|of $500,000. |distribution costs |

|2. Unresolved tax dispute. |Evaluate resolution of dispute and adequacy of disclosure in the financial statements|

| |if this is a material uncertainty. |

|3. Computer equipment donated. |Determine that old equipment was correctly treated in 2008 in the statements and that|

| |an appropriate deduction was taken for donated equipment. |

|4. Annual cash dividend. |Calculate total dividends and determine that dividends were correctly recorded. |

|5. Officers’ bonuses. |Determine whether bonuses were accrued at 12-31-08 and were paid in 2009. Consider |

| |the tax implications of unpaid bonuses to officers. |

|September 16: |...