PART 1

Client background and financials
This section of the audit case provides the following important information about Brant Animal Hospital Professional Corporation that you will need to complete the 2012 audit:
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History of the company History of the audit Prior-year auditor’s report and financial statements Significant accounting policies Client documents

Note: Read Part 1, along with the procedures outlined in Part 2, before completing the tasks described in Part 3.

History of Brant Animal Hospital Professional Corporation
Brant Animal Hospital is a well-respected veterinary practice operating in Burlington Ontario. Brant opened its doors in 1985 as a satellite operation to an established veterinary practice, Tyandaga Animal Clinic in Aldershot. Ross Petersen and Elizabeth Shaw, the two founding veterinarians of Brant, were in partnership with two other veterinarians at Tyandaga Animal Clinic. They saw Brant as an opportunity to establish a new practice without risking their current operation by breaking into a new market, and hoped eventually to be able to practice full time from Brant Animal Hospital and sell their ownership in Tyandaga Animal Clinic. Unfortunately for Petersen and Shaw, their part-time efforts yielded part-time results. After five years, they were still unable to operate Brant Animal Hospital on a full-time basis. The operation could afford to have staff available only in the afternoons, equipment was underutilized, and stock was not kept at optimum levels. Worse yet, the partners’ business relationship had begun to deteriorate, and Petersen was no longer inclined to put in any time at Brant. Shaw soon realized that she was unable to fulfill her duties at both locations. They decided that the best course of action would be to sell the practice. Brant was put up for sale. Beatrice Simcoe attended Guelph University,