Sleek Corporation is a public corporation whose stock is traded on a national securities exchange.Sleek hired Garson Associates,CPAs,to audit Sleek's financial statements.Sleek needed the audit to obtain bank loans and to make a public stock offering so that it could undertake a business expansion program.
Before the engagement,
F. Hedge, Sleek's president, told Garson's managing partner that the audited financial statements would be submitted to Sleek's banks to obtain the necessary loans.
During the course of the audit, Garson's managing partner found that Hedge and other Sleek officers had embezzled substantial amounts of money from the corporation. These embezzlements threatened Sleek's financial stability. When these findings were brought to Hedge's attention, Hedge promised that the money would be repaid and begged Garson not to disclose the embezzlements.

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The Answer of Sleek Corporation is a public corporation whose stock is traded on a national securities exchange.Sleek hired Garson Associates,CPAs,to audit Sleek's financial statements.Sleek needed the audit to obtain bank loans and to make a public stock offering so that it could undertake a business expansion program.
Before the engagement,
F. Hedge, Sleek's president, told Garson's managing partner that the audited financial statements would be submitted to Sleek's banks to obtain the necessary loans.
During the course of the audit, Garson's managing partner found that Hedge and other Sleek officers had embezzled substantial amounts of money from the corporation. These embezzlements threatened Sleek's financial stability. When these findings were brought to Hedge's attention, Hedge promised that the money would be repaid and begged Garson not to disclose the embezzlements.

Sleek Corporation Is a Public Corporation Whose Stock Is Traded