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Professorcomments.docx

MIlestone 1 comments

Income Statement: You did a good job overall highlighting and identifying how some of the financial information would differ if prepared under IFRS versus US GAAP - On the income statements you prepared, you have no heading; 2015 needs to be listed first, and there are no EPS for all three years - Balance Sheet: The balance sheets were OK; however, 2015 needs to be listed first, and there is no heading. Statement of Retained Earnings: There is no heading, and 2015 needs to be listed first. Statement of Cash Flows: As you know, this still needs some work to be acceptable; however, where is the heading, 2015 needs to be listed first, and all three sections are incorrect for both years except the investing section for 2014 - Ratio Analysis: Good job with your narrative comments as well as your schedule to show some of the key ratios for the three-year period. Vertical and Horizontal Analysis: You identified and highlighted quite well some of the key areas over the three-year period that management should review. Key Ratios: Although you mentioned some of the ratios in comparison with its key competitors, the information was weak at best and could be strengthened significantly with a more complete chart with the appropriate date comparisons. Vertical and Horizontal Analysis: There are just too many issues to consider proficient in this area.  For example, on the horizontal balance sheets, all of the percentages for both years are incorrect - On the horizontal income statements, all of the percentages for both years are incorrect - On the vertical income statements, all of the percentages are incorrect because gross sales are greater than 100% as net sales are 100% - Articulation of Response: I found no issues with any writing skills.

Milestone 2 Comments

Business Risk Analysis: You identified and discussed quite well some key business risks applicable to this company as well as the industry overall. Sample Audit Program: Although many of your narrative comments were meaningful and relevant regarding a proposed audit plan, you need to develop a formal audit plan incorporating those comments into it. Report of Recommendations: I found many of your comments hard to understand and somewhat disorganized, so perhaps they could be presented under one caption which would tell the reader where you are going. Good discussion of SOX and its importance in the auditing profession. Articulation of Response: Overall, I found no issues with any significant writing skills or citations.

Milestone three Comments

Personal Tax Planning: Although I understood some of your comments, most of the facts you presented were either misunderstood by me or incorrect, so please when you submit your final presentation, be more specific and accurate.  Partnership Income: I found no discussion of converting the partnership to another form of entity, such as an S or C corporation or an LLC.  In your discussion of the property dividend distribution, I found no conclusion or recommendation from you to the client, so in your final submission, please be more specific in what you recommend and why. Clifford Co.’s Tax Preparation: Overall, the individual tax return was OK; however, lines 40 and 52 are incorrect, as well as Schedule A.  Articulation of Response: As noted previously, I found some of your comments incorrect or confusing, so please correct those issues before the final submission.