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Kobyashi Moru prepares two sets of financial statements; one set using Chinese standards and GAAP (as meager as those standards may be) and the other for use in the US attempting to conform to US GAAP. The Chinese financials contain a single footnote describing the accounting principles used in the original books of entry.

Prepare an essay that describes how you should report on these two sets of statements in your final audit report. You will need to conduct research to prepare your essay.

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