Individual Assignment: CPA Report. As the CPA for a big organization, you were asked by your manager to give information to outside CPAs who are analyzing a subsidiary which has been set up as a corporation. As part of their review, the CPAs have asked you to give them with the given descriptions:
The methodology employed to find out deferred taxes. The procedures for reporting accounting changes and error corrections. The rationale behind establishing the subsidiary as the corporation.
Make your response to the three questions. Before submitting your response, your manager would like to identify a little bit more regarding the request. She has asked you to tell her what your professional responsibilities are as a CPA, and the difference between the review and an audit.