Problem
1. During the year-end audit of Busby Mfg., your firm noted significant purchases from a related party of Busby. Management has declined to disclose the related-party transactions in the footnotes. This is the only item that the auditor wishes to consider for the report on financial statements. Find the relevant sample reporting language in the AICPA Professional Standards that is applicable to such an instance of (material) inadequate disclosure.
2. Assume that you are a CPA in public practice and a client has offered you a gift that is not significant in value. Can you ever accept a gift from a client? Provide the specific code reference that addresses how to resolve the issue.
3. AICPA Professional Standards provide guidance on the language that should be used in the auditor's report. Select the most relevant AICPA template for the continuing auditor's "unmodified" report on consolidated comparative financial statements from the applicable Statement on Auditing Standards.