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Question: Mr. Pucker operates a sports memorabilia store in a Jackson Square located in Hamilton Ontario. A five year lease was signed with the mall operator in 2015. The agreement stipulates that Mr. Pucker must remit monthly 2% of prior month sales on the 15th day of the following month.
Management of the mall would like to get some assurance that the monthly sales reported by Mr Pucker are being reported accurately. You are an Audit Manager who works for the firm Lee and Ross LLP. Ms. Lee has approached you to address a series of questions related to this engagement.
Required: 1. Discuss 3 different types of reports that would be appropriate to meet the needs of the management of the mall e.g. clearly explain why the report would be suitable.
2. Recommend a report that would be most suitable given the facts in the question.
3. Discuss whether or not the report would be a general purpose report or a special purpose report.
4. Outline the considerations when accepting the engagement for the report that you recommended in part 3.
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