Discussion / Accounting

This is a discussion question . You have to give a clear answer accordind to GAAP what should this company do in this situation . You don’t have to cite your sources or use any source to answer this question . No sources from the internet just your opinion , you have to show how you understand the material and real life situation …
Here is the situation :
As a result of preparing for its first audit, Smythe Company has been scouring its books to make sure everything is ready and properly calculated for the auditor. During this process, the accountants discovered that several items were being accounted for using the cash method which is what the owners of the Company both understand and wanted done. You are one of the accountants and you know that the cash method is not acceptable for GAAP under which the audit will be conducted. Even without knowing the timing or type of the necessary adjustments, comment on whether you think these should be treated as errors or changes in estimate and what your process should be in doing this analysis. Include your conclusion on what to do.
Your job is to read the situation and write your conclusion what to do in this situation …

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