YRS, Incorporated Balance Sheet
Year Ended December 31, 2006
Accounts Receivable 200
Total Assets 300
Accounts Payable 150
Capital Stock 100
Gross Profit 400
Income Tax Expense 100
Net Income 100
The information presented above is the financial statements provided by the client. You are the senior auditor of a Big 4 audit firm and the partner in charge of the engagement has asked you provide an opinion on the financial statements presented above. The partner has asked you, in the interest of time, to prepare a short memo (not the formal audit report) to the client as he has a meeting with the CFO of YRS Incorporated. Your memo should include what type of opinion that would be rendered given the information stated above. In addition, you are required to provide specific support for your conclusions.
For your convenience, I have attached both a formatted MS Excel file and an MS Word file containing the information posted below. I have also included notes as well as two reference sources which might prove helpful towards incresing your understanding of the subject matter.
Auditors Opinion of 2006 Year-to-Date Financial Reports
Upon examination of the company financial reports that were forwarded to us, we are of the opinion that given last year's cash balance and net income, that YRS Corporation is carrying an unusually high debt that could place the company in financial jeopardy in the event that an unexpected and/or unforeseen financial situation should befall ...
This file contains a formatted MS Excel file and an MS Word file containing a financial analysis for YRS Incorporated, as well as two reference sources which might prove helpful towards incresing your understanding of the subject matter.