Auditing & Assurance Services 6th Edition by Timothy Louwers

Exercise 194

Erroneous Reporting on Interim Financial Information. Baker Baker, CPAs, prepared the following report on the interim financial information of Micro Mini Company. The interim financial information was presented in the first quarterly report for the threemonth period ended March 31, 2015. No comparative quarterly information of the first quarter of the prior year was presented. Baker Baker completed a review in accordance with standards established by the AICPA and found that, to the best of their knowledge, the information was presented in conformity with GAAP. In an audit report dated January 21, 2015, Baker Baker had given a standard unmodified audit report on Micro Mini's 2014 and 2013 annual financial statements.

Required:
a. Review the report and list, with explanation, the erroneous portions in it.
b. Rewrite the report.