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James Carson and Martin Tighe, CPAs Have Audited All the Figures

Question 103

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James Carson and Martin Tighe, CPAs have audited all the figures on the balance sheet. James Carson argues with Martin Tighe that since the retained earnings figure is a balancing figure, it requires no further verification. Martin Tighe, however, disagrees and argues that they should still choose to verify retained earnings. Who do you agree with and why?

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Martin Tighe is correct.
The retained ea...

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