Donna Prima,CPA,was Engaged to Review the Unaudited Financial Statements of Rooster

Essay

Donna Prima,CPA,was engaged to review the unaudited financial statements of Rooster Restaurants Inc.,a nonpublic company.During her review,Donna found that Rooster had not capitalized leases as required by GAAP.The result was so material,that Donna modified the standard review report to state that "the financial statements are not in conformity with GAAP."
Required:
Is Donna's report in accordance with professional standards? If not,what should she have done under the circumstances? Explain.