Star Appliance Corp

Essay

Star Appliance Corp. has requested that Malfie Thomas, CPA provide a report, including a debt compliance letter, to Great Northern Bank about the existence or nonexistence of certain loan conditions. The conditions to be reported on are the working capital ratio, dividends paid on preferred stock, aging of accounts receivable, and the competence of management. This is Malfie's first experience with Star appliance. Should Malfie accept this engagement? Provide justification for your answer.