Please write Accounting Memo for case study listed below: Needs to have ASC codification to explain.
Spirit of Giving
It’s holiday time, and SpiceCo., a nonpublic company and your audit client of five years, has invited
you and a guest to attend the company’s holiday party. The party is a black-tie event complete with cocktails, fine
foods, and a live band. Should you attend?
Now reverse the situation—your audit firm is holding the party, and you are considering extending an invitation
to Ms. James, the Controller at SpiceCo., and her husband Mr. James. Should you invite her?