Auditing & Assurance Services 6th Edition by Timothy Louwers

Exercise 57

Audit Report Deficiencies: Audits of Group Financial Statements and Other Operating Matters. Following is Rex Wolf's report on Bonair Corporation's financial statements. Bonair publishes general-purpose financial statements for distribution to owners, creditors, potential investors, and the general public.

Required:
Describe the reporting deficiencies and explain why they are considered deficiencies. Organize your response according to each of the paragraphs or sections in the standard (unmodified) report.