You are the auditor of Donaldson 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 Donaldson Corporation.What concerns would you have as the auditor of Donaldson Corporation regarding this transaction?

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The Answer of You are the auditor of Donaldson 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 Donaldson Corporation.What concerns would you have as the auditor of Donaldson Corporation regarding this transaction?

You Are the Auditor of Donaldson Corporation,a Newly Organized Company