Step 1The accounting reports of any entity should be prepared in such a form that it should not contain any material misstatements and there should not be any ambiguity in the report preparation. In the current report, we have a company Purchase Point Media Corporation and the report for the first year of operations has been given. We will be checking the report thoroughly for any mistakes or error as posted in the preparation of the report and will identify those mistakes.ErrorsReasons

Projected Statement of Net IncomeThere is no term such as projected statement of net income as the same is not in terms with the accounting term.

For the first twelve months of operationsThe financial statements for any entity are prepared in terms of years and not months.

Safe Harbor Statement under the private securities litigation act of 1995Two sentence fragments and a spelling error in the given statement

Project statement of net incomeNot a conventional accounting term

Corporate houseThe name being a corporate entity should be capitalized

RiskThe word risk here is in the singular form which is wrong as per the statement and it should be in the plural form.

Dear SirsWe never address the report as Sirs, it is always addressed as Sir

Projected StatementAgain, projected statement is not the right term

These figures do not include start up and development costsFirstly, these figures is not the right term to use in the report and secondly, the start and development costs have a part in the financials of the company and cannot be excluded

Basic AssumptionsThe basic assumptions which have been taken in the report should be additionally mentioned in the report

The revenue generation concept It has been mentioned that the revenue will be generated with the patented displays being installed in the stores which is not the right concept of accounting for revenue. The accounting for revenue asks for accounting revenues as and when the stores are running on the accrual basis.

Generally accepted accounting principlesThe statements prepared with generally accepted accounting principles is not the right term as there is no concept such as generally accepted accounting principles.

Decides to remainThe statement that the company decides to remain with 14,400 stores is vague and does not validate here. In the report, we never state any negative statement which gives a bad view for the users who are intended to read the report.

Yours very trulyYours very truly is a wrong statement to end the letter with and is a wrong statement made here.

Corporate HouseThe Corporate House cannot be a signatory to the letter instead the Companies name should be at the bottom and the name of the person signing the report on behalf of the company should be addressed above.

The company expects to affix its display panel Affix is a wrong word over here as display panels cannot be affixed. Its a grammatical mistake

For conservative purposesFor Conservative purposes is a wrong choice of word for the report and is a substance error.

Amortization of the display panelDisplay panel is tangible asset and thus amortization cannot take place. Its a substance error and depreciation is the right word.

Advertiser is free to renew or discontinue the serviceFree to renew or discontinue is a wrong choice of word and shows a grammatical error.

The figure of $0.11 is conservative basedIts a substance error as figures cannot be conservative based

The expenseThe expense is a grammatical error

Replacement due to vandalism regardless of the securityThis is a grammatical error as the sentence does not make any sense.

Management is currently seeking insurance, which will lessen the expenseThe word lessen the expense is a grammatical error as expenses are either decreased or reduced.

It is estimated that vandalism will effect 5% of the display panelsEffect is a grammatical error present in the statement and it will be affect.

Vandalism will occur in two different fashions: first by placing graffiti on the display unit and secondly by smashing the unit in some way.The word fashion is apparently wrong and secondly smashing the unit in some way does not reveal the true nature of the vandalism. Therefore its a substance error.

This would mean 144,000 would require a replacement panelThere is no unit mentioned against the figure and thus a substance error present.

The company will enter into a five year contract with each supermarket chain to ensure longevity for its advertisersThe word longevity does not serve the right purpose here.

The company has allowed for a 15% commission to be paid to the advertiser in the form of a discount or in some cases paid to their ad agency of recordThe sentence is not complete as it is half measured and not properly described. The some cases does not complete the sentence.

With 1200 new shores using the Companies advertising system each month and each store have 200 shopping carts in use this results in 240000 installation each monthThe sentence is incomplete as there is broken message in the sentence. This is a grammatical error as well as substance error

It is estimated that advertising will be changed on quarterly basisThe word changed is wrong and it should be charged and hence a grammatical error

8. Accounting and Auditing The accounting functions are as followsWhich accounting functions are missing from the sentence and thus substance error

Administering monthly payroll, creditor invoices and expense advancesAdministering is the wrong word and shows grammatical error

This person will be paid $6,000 per monthThe person is not mentioned and thus shows the substance error.

This junior clerk might be a part time accountant initially and later in the second year will be hired full timeThis is a substance error in the report as the junior clerk cannot be a part time accountant as both are two different things entirely

Salary compensation for this clerk will be $2,000 per month in the last quarterSubstance error as the sentence is not defined properly.

In addition, to the estimate of salaries, the will be a cost for the yearend audit to meet the listing requirements of regularity bodiesGrammatical error of comas and the sentence being incomplete.

Leasing top 10 Advertisement Agency magazines in the United States which specialize in the food and grocery industry and are distributed to the top Ad-Agencies monthlyThe sentence does not make any sense and there is no proper direction

For simplicity, this cost will be spread evenly over the four quarterThere is no basis of simplicity and thus lacks substance

Advertising in magazines and periodicals is a major cost but this form of advertising will alert advertisers and their agents to the services being offered by the companyThe sentence is not complete and shows grammatical errors of major costs, will alert advertisers from the point of report writing

Entertainment and promotion mainly covers the cost of wining and dining advertisement agents and other media personnel and on occasion seminar-style meetings. The word wining and dining is not appropriate over here and shows substance error

Since money must be spend in this area to create a willingness to use the companys display panels, it is estimated that $10,000 a month will be allotted. Since money must be spend is a wrong sentence and does not serves the purpose of the message. Hence, a substance error

This results in $30,000 a quarter.The sentence is incomplete and poses a substance threat to the report

Insurance coverage will have to be obtained for general liability, office contents, directors liability insurance and gross profit protection.There is no concept of gross profit protection when it comes to insurance coverage.

The chances of this ever happening is extremely remote. The sentence does not serve the purpose and is incomplete in its meaning and thus substance error

Management fee comprises the following individualsThe sentence is wrong as fee cannot comprise of individuals

Omission error in the annual remuneration of Vice President Marketing as 9,000 instead of 90,000There is a substance error of omission mistake as the figure is incomplete.

Office and sundry expenses comprise photocopying paper, office supplies, envelopes, binders, coffee, pens and pencils, computer tapes and paper, postage, filing cabinets, adding machines and other items of lesser dollar value which are normally required in the officeThe sentence contains grammatical errors in the form photocopying paper and others lesser dollar value where it does not serves the message properly.

Initally, the cost of starting two offices; one in the eastern part of the United States and the other in the western part, which will require a greater outlay than in subsequent months.The sentence is incomplete as it starts off with a different meaning and ends on different meaning. Thus, there is substance error in the sentence

There the following has been budgeted by quarterThe sentence is wrong and has a grammatical error

Public relations are a high priority for management. Public relations firms will be hired to search for new institutional investors and to prepare the required information to be circulated monthly to current and potential shareholders. The sentence has substance error in the form of high priority for the management as the sentence does not serve the right purpose

The offices will not have to be large in space since limited personnel will be required to mange the operations.There is a grammatical error of spelling mistake for mange which would be manage.

The building does not have to be class A rating and can be located outside of the busier section of the city.Class A rating is wrong choice of word in the sentence and such word does not hold place in the reports

The accountants and assistance accountants salaries have been covered under Accounting and Auditing noted fewer than 8 above. The word assistance is wrong and should be assistant and the sentence covered under accounting and auditing is wrong reference.

There are employees other than the aforementioned: being two receptionists, two girl Fridays and two account representatives to sell the advertisingTwo girl Fridays does not reflect any personnel required for work and there is no concept of sell the advertising. This shows both grammatical and substance error

Other employees will be hired either on a part time basis or else as demand requires Or else as demand requires is wrong statement and does not serve the purpose right

$ symbol under table Salaries and BenefitsThe $ symbol is missing under the table salaries and benefits and is a minor substance error

Said cost is estimated at $10,000The cost is not defined in the estimated costs and there is no linkage

Therefore, it is anticipated travel costs will be $10,000 a month for the first quarter, increasing by 100% for each the second and third quarters. The sentence is incomplete as it is anticipated travel costs will be and there should be a coma in between and thus a grammatical error

In the last quarter it is anticipated travel locally in the United States will amount to $35,000 per month with the added cost each month of trips to Europe. Travel locally is incomplete and leaves the sentence incomplete as it does not serve the sentence right. Its a grammatical error

Step 2Table 1As given separately in the excel sheetStep 3Table 2As given separately in the excel sheet