You, a CA, have recently accepted a job at the accounting firm of Cat, Scan, & Partners, as a…

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You, a CA, have recently accepted a job at the accounting firm of Cat, Scan, & Partners, as a manager, and have been assigned the audit of Vision Clothing Inc. (VCI). The partner in charge had been at VCI the previous week and had met with the controller to discuss the year-end audit. The partner has requested that you review his notes and prepare a detailed report for the client regarding accounting and other issues (excluding tax and assurance). He handed you his notes and extracts from the current year s preliminary financial statements (Exhibit III ), from which you learn the following about the company. Required: Prepare the report to the client and the memo to partner.

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