Donna Prima,PA,was engaged to review the financial statements of Rooster Restaurants,Inc. ,a private company.During her review,Donna found that Rooster had not capitalized leases as required under GAAP.The result was so material,that Donna modified the standard review report to state that "the financial statements are not in accordance with GAAP."
Required:
Is Prima's report in accordance with professional standards? If not,what should she have done under the circumstances? Explain.

Question

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The Answer of Donna Prima,PA,was engaged to review the financial statements of Rooster Restaurants,Inc. ,a private company.During her review,Donna found that Rooster had not capitalized leases as required under GAAP.The result was so material,that Donna modified the standard review report to state that "the financial statements are not in accordance with GAAP."
Required:
Is Prima's report in accordance with professional standards? If not,what should she have done under the circumstances? Explain.

Donna Prima,PA,was Engaged to Review the Financial Statements of Rooster