5-2 Email on Financial Statement Misrepresentation
ACC 512 - Advanced Auditing
Arizona State University
Dear LMS Manufacturing Corporation,
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
I am writing to bring your attention to some discrepancies that I have encountered while
executing an examination of LMS Manufacturing Corporation's financial statements. I
conducted a thorough review, and it has become evident that there has been information
that has been deleted from the financial reports. The representation of the company's
revenue seems to be faulty, which seems to be deceptive in nature. This is very unnerving,
from an ethical and professional perspective. I am alerting you to my following concerns and
how to rectify the situation
Causes of Misstatements in Financial Statements:
Asset Valuation: Discrepancies of valuation of an asset can cause the company's financial
standing to be misrepresented.
Misstatements of a Company's Liabilities: A liability is recorded incorrectly, or the liability
belongs to a third party.
Revenue Recognition: Transaction maybe recorded incorrectly.
Materiality Threshold Establishment:
It is vital to establish a threshold of materiality in taking the action of analyzing the revenue
account and the exact hindrance of the misstatements. When setting the threshold, it
should bebased on the financial statements and the standards that have been adopted in
the industry. This will help with accuracy and the company to be transparent in their
financial reporting. The materiality threshold is typically stated as a general percentage of a
specific financial statement line item. (Thompson/Greenspon 2018 March 16).
Review the Regulatory Requirements: Research and implement regulatory
requirements and the current industry standards that will influence the materiality
thresholds for the revenue recognition and the company's financial reporting.
Compute a Base Amount: There must be a determination of base amount for materiality.
This can be found by the percentage of the total revenue or of the net income. It can be
calculated by using the industry standard.
Financial Statement Components: Analyzing the major sections of the revenue accounts for
discrepancies that will impact the financial statements.
Misstatements Impact on the Company's Stakeholders:
Client: There can be legal consequences for LMS Manufacturing Corporation for
intentionally fraudulent financial information. LMS Manufacturing Corporation's reputation
can be irreparably damaged.
Stakeholders: False financial information can lead to faulty investments decisions that can
lead the stakeholder to have significant financial losses.
Auditors: Crestview Financial Services can face questioning for failing to detect the
misstatements, leading to fines, legal issues, and reputation is damaged.
Recommendations:
Investigation through internal avenues should be executed to identify the cause of the
misstatements and rectify the financial reporting procedure.
Hire an independent forensic accountant to analyze the documentation and aid in the
investigation of the misstatements and adding disciplinary measures.
To show transparency stakeholders should be informed of the misstatements and the
investigation into them.
Improvement of internal controls to prevent this event in the future and to keep compliance
with regulatory requirements.
It is vital that action is taken immediately to correct the misstatements and eliminate any
legal issues, loss of reputation, and retore the integrity and confidence in LMS
Manufacturing Corporation.
Please feel free to reach out with any questions or concerns.
Thank you,
Lisa L. Stiles Accountant, Crestview Financial Services
