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The part¬ner explains to you that the prospective client, Ocean Manufacturing, Inc. is a medium-sized manufacturer of small home appliances. The partner recently met the company's president at a local chamber of commerce meeting. He indicated that, after some diffi¬cult negotiations, the company has decided to terminate its relationship with its current auditor. The president explained that the main reason for the switch is to establish a relationship with a more nationally known CPA firm because the company plans to make an initial public offering (IPO) of its common stock within the next few years...
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