You are asked to adopt a role of CPA. Tom Howard, who is a lawyer of Peter and Mary, has requested you to prepare a report to assess the misstatements in the financial statements of 2016 and how they affect the buyout arrangements. Users and Objectives The user of this report includes Tom Howard, a lawyer of MMI – His objective is to address the misstatements in the financial statements of the MMI and drive a solution for them and to determine the purchase consideration Peter should pay to obtain Mary’s share of business. Peter, Director of the company – he wants to ensure that financial statements give a true and fair view and are free from any material misstatements, whether due to fraud or error.
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