You are a CPA and it is late Wednesday afternoon. You are sitting down to a meeting with your client Robert. Robert owns R & M Home Maintenance, a small construction company that started a business earlier in the year. Robert tells you he has been using QuickBooks to keep up with his bookkeeping. He tells you he feels fairly confident in his work, after all “it’s not that hard. Debits, credits? I mean I have a debit card and a credit card so that’s bascially the same thing!” However, he has a meeting scheduled for 9:00 am Friday with the bank to discuss a new loan and he needs to make sure his financial statements are in order. He gives you a copy of his QuickBooks file and asks you to take a look at his work and make sure everything looks good. You tell Robert you will look at it first thing when getting to the office tomorrow and will have it for him Friday morning.

In an essay format of at least 150 words, using COMPLETE SENTENCES AND PROPER GRAMMAR, please answer the following questions:

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What should you look for in the QuickBooks file to make sure Robert has set it up correctly?
What kind of “red flag” transactions would you want to keep an eye out for that Robert might have recorded incorrectly on accident? (For example – recording accounts receivable as revenue.) For more information on QuickBooks check on this: https://en.wikipedia.org/wiki/QuickBooks

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