Baker Construction is a small corporation owned and managed by Tom Baker. The corporation has 21 employees, few cred-itors, and no investor other than Tom Baker. Thus, like many small businesses, it has no obligation to issue fi nancial state-ments to creditors or investors. Under these circumstances, is there any reason for this corporation to maintain account-ing records?

Baker Construction is a small corporation owned and managed by Tom Baker. The corporation has 21 employees, few cred-itors, and no investor other than Tom Baker. Thus, like many small businesses, it has no obligation to issue fi nancial state-ments to creditors or investors. Under these circumstances, is there any reason for this corporation to maintain account-ing records?

Contemporary Auditing

11th Edition

ISBN:9781337650380

Author:KNAPP

Publisher:KNAPP

Chapter1: Comprehensive Cases

Section1.8: Livent, Inc.

Problem 6Q

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