You are the auditor of Don Corporation, a newly organized company that manufactures plastic cups using an extrusion process. One of the promoters of the company was formerly involved in an enterprise that used the extrusion process and has agreed to contribute an extrusion machine to the new company in return for shares of stock of Don Corporation. What concerns would you have as the auditor of Don Corporation regarding this transaction?

Question

Quizplus · Accepted Answer

The Answer of You are the auditor of Don Corporation, a newly organized company that manufactures plastic cups using an extrusion process. One of the promoters of the company was formerly involved in an enterprise that used the extrusion process and has agreed to contribute an extrusion machine to the new company in return for shares of stock of Don Corporation. What concerns would you have as the auditor of Don Corporation regarding this transaction?

You Are the Auditor of Don Corporation, a Newly Organized