Auditing and Accounting Cases 4th Edition by Deborah Freier,Jay Thibodeau

Exercise 5

Consider the role of president at BFA. Next, assume that as president, you are representing the upper management team at the Foundation's annual meeting. During the question-and-answer session, an investor asks you to justify the creation of ALO and whether the real estate transactions between BFA and ALO were legitimate. Develop a response that could potentially satisfy the investor's curiosity.