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SOLUTIONS MANUAL
to accompany
MODERN AUDITING
&
ASSURANCE SERVICES
6th edition
Prepared by
Philomena Leung, Paul Coram, Barry Cooper and
Peter Richardson
© John Wiley & Sons Australia, Ltd 2015

Solutions manual to accompany Modern Auditing and Assurance Services 6e
© John Wiley & Sons Australia, Ltd 2015 8.2
Chapter 8: Client evaluation and planning the audit
Review Questions
8.11 List the steps performed by an auditor before accepting a new audit
appointment.
• Assess the firm’s competence to carry out the audit work.
• Obtain permission from the client to contact the outgoing auditor, refuse the
engagement if permission is not received.
• Communicate with the outgoing auditor to assess if there are any reasons why they
should not accept appointment.
• Outgoing auditor will seek permission from client to respond and reply.
• Incoming auditor reviews response from outgoing auditor for any issues that might
affect acceptance of the audit.
• Consider if any conflicts of interest arise by accepting the client.
• Determine the firm’s ability to use due care in performing the audit.
• Consider the integrity of management.
• Prepare a preliminary assessment of risk of accepting the client.
8.12 Identify applicable ethical considerations in accepting a new audit engagement.
Before accepting a new client the auditor should consider whether acceptance would create
any threats to compliance with the fundamental principles (APES 110). The auditor should:
• evaluate whether there are circumstances that would compromise his or her
independence such as the existence of personal or financial relationships with the
proposed client or any conflict of interest between the auditor or any existing client
and the proposed client;
• assess competence to perform the audit, especially the availability of the necessary
expertise relative to the nature of the proposed audit clients business or scale of
operations;
• determine the ability to use due care, especially with respect to the timing of the audit
work and the availability of competent staff to complete the work to the required
standard within the time available.
8.13 What are the benefits of audit planning?
Benefits include allowing the auditor to:
• Direct attention to the key areas for the audit.
• Identify and resolve potential problems efficiently.
• Identify the mix of skills required to respond to identified risks.
• Select, direct, supervise, manage, including reviewing the work performed by, the
audit team.
• Ensure the audit is performed in a controlled manner.

8.14 Discuss the contention that the engagement letter understates the auditor’s legal
responsibilities so as to discourage litigation.
See ASA 210. The contents of an audit engagement letter are based on factual responsibilities
of the auditor. However, it is quite possible that some users/managers may look at the
engagement letter and perceive it as an attempt by auditors to reduce their responsibilities.
For example, they may draw this conclusion when reading the letter and noting that only
reasonable assurance is provided by auditors and that management is responsible for
adequate accounting records and the internal control structure. However, users would be
incorrect in drawing this conclusion because the letter is a statement of factual
responsibilities and auditors cannot contract out of their responsibilities.
8.15 Discuss the steps involved in the audit planning process.
Planning an audit involves establishing the overall audit strategy for the engagement and
developing an audit plan, in order to reduce audit risk to an acceptably low level (ASA 300).
Planning starts with an understanding of the entity and its environment. Planning also
involves (1) setting materiality levels, (2) assessing audit risk and its components, (3)
obtaining an understanding of the internal control structure and then (4) developing a
preliminary audit strategy for significant assertions. Auditors should also perform analytical
procedures as part of the planning process as well as consider the risk of fraud.
8.16 What is the purpose of touring operating facilities and offices?
A tour of the operating facilities and offices is a significant help to an auditor in obtaining
knowledge about a new client’s operating characteristics. During a tour of the factory,
auditors should become familiar with the factory layout, the manufacturing process, storage
facilities and potential trouble spots such as unlocked storerooms, obsolete materials and
excessive scrap.
During a tour of the office, an auditor should become knowledgeable about the types and
locations of accounting records and computer processing facilities and the work habits of
personnel. An important by-product of both tours is the opportunity to meet personnel who
occupy key positions within the organisation. The auditor should document the information
obtained from the factory and office tours.
8.17 Explain the importance of analytical procedures and why auditors may also use
non-financial measures in these procedures.
Analytical procedures are an important for obtaining a more detailed understanding of the
entity and for identifying areas of potential risk. The procedures allow the identification of
unexpected relationships and other unusual items. These indicate areas of greater risk and the
auditors can plan for them accordingly. Auditors also use non-financial information in
performing analytical procedures as financial numbers may have been manipulated to show
normal relationships. Therefore, the use of non-financial information can help identify areas
of possible fraud when they identify unexpected relationships and fluctuations.

8.18 What are the auditor’s responsibilities in relation to fraud?
The activities that the auditor will carry out include procedures to:
• Identify and assess the risks of material misstatement due to fraud.
• Ensure the audit team is aware of the risks of fraud and their responsibilities in
response to those risks.
• Design and implement appropriate responses to the fraud risks identified.
• Respond to any fraud or suspected fraud identified during the audit.
8.19 Define the term ‘working papers’ and indicate their main function in auditing.
Working papers are not defined in the auditing standards which refer to audit documentation.
“Audit documentation” means the record of audit procedures performed, relevant audit
evidence obtained, and conclusions the auditor reached (terms such as “working papers” or
“work papers” are also sometimes used) (ASA 230).
So working papers may be defined as the records kept by the auditor of procedures applied,
the tests performed, the information obtained, and the conclusions reached in the
engagement. Working papers provide the principal support for the auditor’s report, evidence
that the audit was made in accordance with auditing standards, and a means for coordinating
and supervising the audit.
8.20 Identify the benefits of preparing audit documentation.
• Assists the audit planning processes.
• Demonstrates the audit was performed in accordance with
auditing standards.
• Ensures the appropriate direction and supervision of the audit team.
• Facilitates the appropriate review of audit work ensuring the accountability of audit
team members.
• Proves evidence is sufficient and appropriate to support the audit opinion.

Professional Application Questions
8.21 Risk of fraud
Following are a number of factors recognised by the auditor as having an effect on the
risk of fraud.
1. The company is vulnerable to interest rate fluctuations.
2. Management has significant financial interests in the entity.
3. Employees express dissatisfaction with the company and its treatment of staff.
4. Many asset values are based on significant estimates that involve subjective
judgements.
5. Management does not place a high priority on ethical standards.
6. Inadequate systems of authorisation and approval of purchase transactions.
7. Management shows an excessive interest in increasing the entity’s share price.
8. There is a high turnover of internal audit and information technology staff.
9. Employees ignore internal controls and do not focus on reducing risks of
misappropriations of assets.
10. The entity’s industry is highly competitive.
11. Employees anticipate future redundancies.
12. Management attempts to justify marginal or inappropriate accounting on the
basis of materiality on a recurring basis.
Required
For each of the foregoing risk factors, use the following codes to identify the risk
component that is most directly related to (a) fraudulent financial reporting or
misappropriation of assets and (b) incentives/pressures, opportunity or
attitude/rationalisation.
FFR = fraudulent financial reporting I/P = incentives/pressures
MA = misappropriation of assets O = opportunity
A/R = attitude/rationalisation
(a) (b)
1 FFR I/P
2 FFR I/P
3 MA A/R
4 FFR O
5 FFR A/R
6 MA O
7 FFR A/R

(a) (b)
8 FFR O
9 MA A/R
10 FFR I/P
11 MA I/P
12 FFR A/R
8.22 Evaluating Independence
Prior to the appointment of Burberry Partners as the auditor of WeCare for the 2015
financial year, some preliminary analysis has identified the following situations:
 One of the accountants intended to be part of the 2015 audit team owns shares in
WeCare. The accountant’s interest is not material to him.
 Burberry was previously engaged by WeCare to value its intellectual property.
The consolidated balance sheet as at 30 June 2015 included intangible assets of $30
million, which were valued by Burberry on 1 March 2015 following WeCare’s
acquisition of HealthyGlow. The intangibles are considered material to WeCare.
Required
For each situation above:
(a) Identify and explain the potential type of threat to Burberry’s independence (your
answer should take into consideration the independence of individuals as well as
the firm as a whole).
(b) Explain the action that Burberry should take to eliminate the potential threat
identified in (a) above.
Shares
(a) s.324CH(1) of the Corporations Act prohibits a financial interest in the company by
the auditor. APES 290.113 states that a self-interest, familiarity or intimidation threat
may be created if a member of the audit team, or a member of that individual’s
immediate family has a financial interest in the entity. This can be mitigated if the
person is not a senior auditor and if the interest is not material.
(b) The action taken if this is decided to be a problem is to get the person to sell the
shares or remove the person from the audit engagement.
Generally, the audit firms have taken a conservative approach in recent years and prohibited
shareholdings in clients.
Intangibles
(a) This work was undertaken before Burberry was the auditor so the restrictions
associated with non-audit services do not apply. However, this is the provision of an
accounting service which the firm will now have to audit so it creates a self-review
threat. The significance of this threat in relation to valuation services includes a
number of factors included in APES 290.176, such as materiality, involvement of the

client, subjectivity etc.
(b) To eliminate this threat or reduce it to an acceptable level, safeguards include:
• Having a member who was not involved in performing the valuation service
review the audit or the valuation work performed; or
• Making arrangements so that personnel providing such services do not
participate in the audit engagement.
8.23 Client evaluation
Dinfal Ltd is a company that manufactures a range of products for the electronics
industry. You work for a medium-sized firm of accountants, Ejo, Gam & Step. It is now
29 May 2015 and you have been approached by Dennis Launch, one of the directors of
Dinfal Ltd, to perform the financial report audit for the year ended 30 June 2015.
From your brief conversation with Dennis you establish the following:
Dinfal Ltd was set up by Dennis and his cousin Berty Drip, who are both directors
and each own 50% of the shares. Both Dennis and Berty consider themselves to be
entrepreneurs and have a range of experience in different industries. Since creating
Dinfal Ltd six years ago, the profits have increased very quickly, sales having nearly
doubled each year.
Dennis mentions that they left their previous two auditors due to differences of
opinion about accounting policies and accounting treatments for various transactions
including research and development expenditure.
Your firm has wide experience of the industry but no previous connection to the
company. You have explained to Dennis that there are certain procedures that need to
be followed before you can accept appointment as auditors. Dennis has indicated that
Dinfal Ltd is seeking additional financing and would like the audit to be completed as
soon as possible so that the audited financial report can be provided to the potential
financiers to prevent any delay in accessing additional funds.
Required
Highlight the issues that your firm should consider before accepting the appointment as
the auditor of Dinfal Ltd.
• Does the firm have the staff with appropriate skills to carry out the audit?
• Determine the firm’s ability to use due care in performing the audit.
• Are the staff available at what is likely to be a busy time for the firm?
• A check will need to be performed to ensure the firm has no connections with the firm
that would affect independence.
• The firm has clients in the same industry and should therefore ensure there are no
conflicts of interest.
• Permission should be sought to contact the previous auditors, the audit should not be
accepted if this is not received.
• Communicate with the outgoing auditor to establish if there are any reasons why you
should not accept appointment, review the response you receive from the auditors for
any issues that would prevent you accepting the audit.
• You should also ensure that the previous auditor has properly resigned.
• Obtain further details of the issues with the previous auditors, including the details of

accounting policies being followed.
• Review prior year financial reports and obtain copies of the most recent financial
information.
• Consider the integrity of management.
• Obtain further details of the finance being sought, who the potential financiers are
and how the financial report will be presented to them as part of any funding
application.
8.24 Audit engagement letters
You are a partner in an audit firm and your firm has just won the audit for Dezigns
Ltd, a company involved in marketing and development of brands for large companies.
As per the requirements in ASA 210 Agreeing the Terms of Audit Engagements (ISA
210), you prepare an audit engagement letter. It details the objective of the audit, scope
and nature of the auditor’s responsibilities, a statement that management is responsible
for the preparation of the financial statements and safeguarding company assets, and
details about the audit fee. The managing director of Dezigns Ltd is not very impressed
when he is handed the letter. He states:
‘My business is operated on trust and my word is my bond. I am not going to sign this
agreement because it is getting our relationship off on the wrong footing. I am
particularly offended by all of the details outlining my responsibilities — I think I know
what they are. However, I know you have certain business practices so I am prepared to
sign a contract outlining your audit fees.’
Required
Write a letter to the managing director answering his concerns and explaining why you
need a signed audit engagement letter.
The Managing Director
Dezigns Ltd
Dear Sir
We appreciate your concerns about the audit engagement letter and we are sorry if giving you
the letter has offended you in any way. However, please appreciate that the preparation of the
letter is in no way indicative of any lack of trust of you or your firm. The letter is prepared
because we are professional accountants and as such we are obliged to follow professional
standards to ensure that our work is at an appropriate standard. As per the requirement of one
of the auditing standards, (ASA 210) we are obliged to prepare an audit engagement letter
outlining a number of specific things. The audit engagement letter is therefore a fairly
standard document that is basically the same for most clients.
It is true that it does outline your responsibilities but it does not add to them in any way. It is
just a restatement of your responsibilities as they are outlined in the Corporations Act. It does
not just discuss your responsibilities though; it also goes into quite a bit of detail about the
audit process and what our responsibilities are as auditors. This is to make everything clear
from the start of our relationship and avoid any confusion if there are any problems at a later
date.

We would be pleased to talk to you in more detail about the contents of this letter at a time of
your convenience and we look forward to our future professional relationship with Dezigns
Ltd.
Yours sincerely
The Audit Partner
8.25 Planning the audit
Your client is Gateshead Pty Ltd, a large family-owned company which imports and
sells computer hardware products. You are planning the 30 June 2015 audit and, from
your enquiries of management, have obtained the information below.
1. In January 2015, Gateshead applied for and was granted a new loan. The
submission made to the bank stated:
 the current ratio was 0.90
 gross profit was up by 25% compared with that at the same time last year
 the debt-to-equity ratio was 0.40.
2. The bank agreed to the new loan but did enter into a loan covenant with
Gateshead. The covenant required that the company should not breach certain
ratios, and placed certain restrictions on dividends.
From audits you have conducted in previous years, you are suspicious about the validity
of the ratios discussed in the submission. You hear from one of Gateshead’s accounting
staff that the figures had been ‘gently massaged’ to obtain the required ratios.
Required
Discuss (referring to specific areas of the audit) the implications of this information on
your planning of the audit.
This information will affect the planning of the audit for the year quite significantly as a
result of the analytical procedures carried out (ASA 520). It indicates that there is a high risk
of balances within the financial statements being manipulated to ensure that the company
achieves the requirements of the bank covenant with regard to financial ratios. In particular,
the comment that figures have been ‘gently massaged’ should be a cause for concern.
Particular risks:
Industry – Computer hardware
Risk – Potential risk of obsolescence in the inventory held because it is a product that
becomes obsolete very quickly.
Loan – Current ratio requirements
Risk – The company may attempt to overstate current assets and understate current
liabilities to comply with the loan agreement. They may do this by not providing
for doubtful debts or overvaluing inventory. Accruals may not be completely
recorded.
Loan – Company has stated that the gross profit was increased by 25%.
Risk – There is a risk that the cut off for sales has not been properly effected. This

should be carefully reviewed in the audit at the year-end.
Loan – Debt to equity ratio
Risk – This is more difficult to manipulate, however the auditor should look for
potential misclassification.
It is important for auditors to evaluate the compliance of companies with financial ratios. The
implications of a lack of compliance may be quite severe for the company, including
potential going concern problems.
8.26 Planning the audit; analytical review
Tirthe Ltd sells a range of indoor and outdoor furniture by recycling and reinterpreting
old furniture and other wood, metal, glass and plastic products obtained from a variety
of sources such as derelict buildings, deceased estate auctions and so on. Revenue comes
from sales to the general public and businesses such as hotels and restaurants. Some
small items are collected by customers but generally goods are delivered by Tirthe Ltd.
The directors have reported that it has been another good year for the organisation and
that they expect the coming year to be successful.
The draft income statement for 2015 together with audited figures for 2014 are given
below:
30 June
2015
30 June 2014
(draft) (actual)
Revenue 536 994 617 140
Cost of sales (322 187) (302 788)
Gross profit 214 807 314 352
Other income — 7 186
Operating expenses
Administration (95 438) (92 064)
Selling and distribution (50 575) (79 933)
Finance costs (7 434) (7 623)
Profit/(loss) before tax 61 360 141 918
Required
You are planning the audit of Tirthe Ltd for the year ended 30 June 2015, discuss the
issues to be considered in your audit planning from the information contained in the
income statements.
Ratio calculations
Ratio Formulae 2015 2014

Gross profit margin Gross profit ÷ Net sales 40% 51%
Profit margin Profit ÷ Net sales 11% 23%
Times interest
earned
Profit before income taxes and
interest expense ÷ interest expense
9% 20%
Trend analysis
30 June
2014
30 June
2015
30 June
2015
Income statement items (actual) % (draft)
Revenue 617 140 (13) 536 994
Cost of sales (302 788) 6 (322 187)
Gross profit 314 352 (32) 214 807
Other income 7 186 (100) —
Operating expenses
Administration (92 064) 4 (95 438)
Selling and distribution (79 933) (37) (50 575)
Finance costs (7 623) (2) (7 434)
Profit/(loss) before tax 141 918 (57) 61 360
Net profit (decrease of 57%)
The change in net profit is a much a greater fall than the levels of turnover would suggest.
The profit margin has dropped from 23% to 11%. The reasons for this fall needs to be
investigated. A review of each item on the income statement, as discussed below, should
provide those answers.
Sales revenue (decrease of 13%)
There needs to be some investigation to the director’s assertion that it has been another good
year given that the draft income statement shows a fall in revenue. Specific attention may be
devoted to sales testing for completeness (for possible understatement of sales) and cut-off
for receivables to ensure sales have been recorded in the correct period.
Cost of sales (increase of 6%)
Cost of sales have increased when sales revenue has fallen. This may indicate occurrence
problems for purchases (overstatement) or cut-off problems relating to payables and
inventory. It may also indicate completeness problems for inventory quantities
(understatement).
Gross profit (decrease of 32%)
Gross profit margin has fallen from 51% to 40% this may indicate difficult trading conditions
which contradict the director’s assertion about it being a good year. Investigations into the
causes of the change are required, it maybe that there has been an adjustment to pricing
policy leading to reduced profit percentages.
Other income (none this year)
There is no other income this year, this may refer to interest income, or other investment
income. In which case this would indicate the downturn in trade has reduced cash balances or
other investment balances. A review should be conducted to establish the ability of the
company to meet liabilities as they fall due to assess the possible going concern risk - it

should be noted that it usually takes more than one year of reduced performance to create
going concern problems.
Administration (increase of 4%)
Admin costs are likely to be fairly fixed (or stepped) and therefore it might be expected that
admin costs do not change much unless there is a significant change in volume of trade.
Selling and distribution (decrease of 37%)
There has been a decrease in sales which may suggests fewer deliveries, it may also be the
case that reducing the spend on marketing may have led to the fall in sales. There is a
possibility that some costs have been incorrectly allocated to cost of sales - given the increase
in cost of sales referred to above.
Interest payable (decrease of 2%)
A small decrease in the amount paid would not indicate any significant risk. Levels of cash
balances, loans and overdraft levels would indicate the extent to which this expense appears
realistic.
8.27 Fraud risk
Cleanway Ltd is a public company that competes in the highly competitive market for
manufactured household products. The company is dominated by Rob Bigbucks, the
chairman and chief executive officer, who has guided the company since it was a private
company and has extensive influence on all aspects of company operations. Rob is
known to have a short temper and in the past has threatened individuals in the
accounting department with no pay rise if they failed to help him achieve company
goals. Furthermore, the company has extended its influence over customers and has
dictated terms of sale to ensure that customers are able to obtain desired quantities of
their most popular products. Bonuses based on sales are a significant component of the
compensation package for individual product sales managers. Sales managers who do
not meet sales targets three quarters in a row are often replaced. The company has
performed well up until a recent recession, but now the company is having difficulty
moving inventory in most product lines as retailers have difficulty selling in a down
economy.
(a) Identify the fraud risks factors that are present in the case above.
(b) Identify the accounts and assertions that are most likely to be misstated based on
the fraud risk factors noted in this case.
(a) Fraud risk factors are identified in ASA 240:
● High degree of competition in the market
● Domination of the Rob Bigbucks
● Threatened employees with no payrises
● Significant portion of sales managers salaries are paid in bonuses
● Sales managers who do not meet targets three quarters in a row are replaced
● The industry is in a recession and it is starting to affect the company
(b) The financial statement assertions are identified in ASA 500. The most significant threat
is to the occurrence assertion for sales. There is very significant pressure on the sales

managers and there is a high risk that they will take any opportunity to overstate sales,
particularly given that there is a recession.
However, there is also a broader threat of financial reporting fraud on other balances.
This is because of the threatening behaviour of Rob Bigbucks over the accounting
department to ensure that they help him achieve “company goals”. Given the recession,
company goals will be harder to achieve increasing the pressure on the accounting
department.
8.28 Planning
Needles and Glue Ltd is an online retailer of a broad range of art and craft products.
You are an audit senior at the firm Naylor Swit & Co and are planning the financial
report audit for the year ended 30 June 2015. Needles and Glue is a new client to your
firm and this is the first year end since you were appointed. The following information
was obtained from a meeting with the CEO, Barbara Wool.
The company has managed to ride a wave of renewed interest by younger people in
arts and crafts and the revenue for 2015 is approximately $3.2 million. This continues a
trend that has seen revenue increase by between 20% and 30% consistently for the six
years since the company was started by Barbara and her tennis partner Sandra Cloth
who is the COO. Profits in 2015 are $0.2 million and have not increased significantly in
four years despite the increased turnover. In 2016 there are plans to broaden the range
of products sold to include bedding, curtains and household furnishings.
Rapid expansion has put pressure on the company’s various systems, not least of
which is the online sales order system. Needles and Glue do not have their own in-house
IT function relying on Barbara’s sister Tabatha who is responsible for accounting, IT,
HR, payroll and general office management.
You are aware that in previous years errors had been detected at the audit stage,
partly due to IT system errors and partly due to Tabatha’s inexperience as an
accountant. Barbara and Tabatha are confident that any errors in the financial report
will be immaterial and not worth investigating given how busy they are with the
growing business.
As part of the growth of the business the company is looking to raise additional bank
borrowings to fund more warehouse space and invest in improvements to the IT
systems. Barbara has indicated that she needs the audit report signed before 18
September which is when she will be meeting the bank to discuss the details of the loan.
Required
Identify the issues that give rise to risks for the financial report audit you are about to
commence.
Risks to be addressed in the planning of the audit:
First year of audit
This is the first year that the firm has audited the financial report and given the risks outlined
below the audit team will need to be vigilant to ensure audit risk can be minimised. This may
involve including more senior and experienced staff on the audit team.
Going concern risk and over-trading

Rapidly increasing revenue without a similar increase in profits might indicate the risk of
overtrading. Overtrading creates a risk of running out of cash in spite of the increasing
revenue. The need for additional bank loan funding might also suggest that the cash reserves
of the business are under pressure.
Continued expansion and investment in the new warehouse and IT is likely to put more
pressure on cash reserves. Borrowings will require interest payments putting more pressure
on profits. With low profit levels there may be only limited ability to borrow, there is
therefore a risk that inadequate funds will be available for expansion.
With cashflow difficulties, suppliers may be paid late and some may stop supplying if agreed
terms are breached.
The audit risk is that going concern risks are not disclosed or that the financial report should
be prepared on a breakup basis.
Selling a new range of products
The new products being sold are different to the existing product lines. They may be sold to a
similar customer group but there is a risk that obsolete stock will remain in the balance sheet.
The audit risk is that stock is over-valued in the balance sheet where they should be written
down to net realisable value.
IT control systems
There appears to be poor internal controls which leads to a risk of undetected errors in the
financial report. There is a business risk that problems arise in meeting orders from customers
leading to lost revenue.
Bank financing
It is likely that the audited financial report will form part of the decision making process for
the bank in deciding whether to lend the company money. There is a risk that the bank might
look to sue the auditor if the bank suffers a loss from the non-repayment of the loan that
might arise if the financial report contained errors that the auditor did not detect.
8.29 Planning the audit
Alice is an audit senior for the accounting firm of Wong and Partners. In Alice’s
planning of the audit of Lincoln Traders Ltd for the year ended 30 June 2015, she asked
to review the minutes of board of directors meetings for the year to date. From her
review, she noted the following information.
Wong and Partners
Lincoln Traders Ltd
Planning
P–7
Prepared by: Alice
Date: 28/5/15
Notes from board of directors meetings for year to May 2015:
16/8/14 The board agreed to revalue land and buildings in its financial statements in accordance with a
property valuation recently undertaken at the company’s request. The effect would be to
increase their value by 50%.
17/10/14 The company took over one of its major customers during the year. This was not expected to
alter its trading relationship.
15/12/14 It was agreed that a new ‘bonus scheme’ would be implemented. This scheme would award
directors a bonus of a percentage of the profits for this year if they could exceed last year’s
profit figure by 20%.

16/2/15 It was agreed that construction should begin on a new factory for processing tuna. A
construction contract was approved and it was expected the work on the new factory would
commence before the end of March, at least three months before the end of the financial year.
17/5/15 The board agreed to make a large loan to one of the company’s subsidiaries in Fiji one month
before the end of the financial year. The loan did not have any security and no interest was
charged.
Required
Discuss the effect that each of the five noted items in the minutes of the board of
directors meeting will have on specific aspects of the audit plan.
Revaluation of land and buildings
This will require further work by the auditor in the non-current assets section of the audit
work program. The auditor should evaluate whether the directors have obtained the use of an
expert in making this valuation and whether the valuation is part of a normal policy of
valuations. The auditor will need to consider AASB 116 in performing the audit on this
section and ensure the revaluation is on the “class” of assets. The auditor should also evaluate
the materiality of the revaluation to consider whether he/she should obtain the services of an
independent expert to ensure that the valuation is not greater than recoverable amount. The
auditor should consider ASA 620 if an in independent expert is used.
Takeover of a major customer
This is of interest to the auditor because Lincoln Traders will need to consolidate the
company. The auditor should take extra care to ensure that intercompany transactions are
properly identified and recorded for elimination on consolidation. The auditor should also
take particular care to ensure that all intercompany balances are eliminated at the end of the
year. Any large transactions between the two companies around balance date should be
carefully reviewed to ensure that cut-off has been properly effected.
Bonus scheme
These schemes are popular to attempt to align shareholders’ interests with management's.
However, they raise some concerns for auditors in relation to profit manipulation. The auditor
should be careful to ensure that all provisions are properly stated, all liabilities are recorded
in the period, and that accounting policies are consistent with prior years. The auditor should
also be careful to ensure that all sales towards the end of the year are valid and that there are
no unusually large returns after balance date.
New factory
The auditor should ensure that all costs are properly accumulated at the end of the year for
the construction in progress of the new factory. The auditor should perform adequate work on
the ‘construction in progress’ account and should visit the construction site to evaluate the
existence of the factory and obtain an estimate of its percentage of completion. Depending on
the materiality of the factory, the auditor may want to consider using the work of an expert,
ASA 620.
Loan to subsidiary in Fiji
The auditor should firstly ensure that the loan is adequately disclosed in the accounts of the
subsidiary in Fiji. The auditor should then consider the collectability of the loan. This may
include a review of the draft financial statements of the subsidiary and discussion with
management in both companies. It should be carefully evaluated to ensure that the amount is

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Title: Uncle Wiggily's Story Book
Author: Howard Roger Garis
Illustrator: Lang Campbell
Release date: November 3, 2019 [eBook #60625]
Most recently updated: October 17, 2024
Language: English
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*** START OF THE PROJECT GUTENBERG EBOOK UNCLE
WIGGILY'S STORY BOOK ***

UNCLE WIGGILY'S
STORY BOOK
By
HOWARD R. GARIS
AUTHOR OF
Uncle Wiggily's Airship; Uncle Wiggily's
Automobile; Uncle Wiggily on the Farm;
Uncle Wiggily's Travels
Platt & Munk, Publishers
NEW YORK

UNCLE WIGGILY'S STORY BOOK
Copyright MCMXXI and MCMXXXIX
By
Platt & Munk

CONTENTS
STORY PAGE
IUncle Wiggily's Toothache 3
IIUncle Wiggily and the Freckled Girl 10
IIIUncle Wiggily and the Mud Puddle 18
IVUncle Wiggily and the Bad Boy 26
VUncle Wiggily and the Good Boy 32
VIUncle Wiggily's Valentine 38
VIIUncle Wiggily and the Bad Dog 44
VIIIUncle Wiggily and Puss in Boots 51
IXUncle Wiggily and the Lost Boy 58
XUncle Wiggily and Stubby Toes 64
XIUncle Wiggily's Christmas 70
XIIUncle Wiggily's Fourth of July 77
XIIIUncle Wiggily and the Skates 85
XIVUncle Wiggily Goes Coasting 93
XVUncle Wiggily's Picnic 100
XVIUncle Wiggily's Rain Storm 107
XVIIUncle Wiggily and the Mumps 113
XVIIIUncle Wiggily and the Measles 122
XIXUncle Wiggily and the Chicken-Pox 130
XXUncle Wiggily's Hallowe'en 136
XXIUncle Wiggily and the Poor Dog 142
XXIIUncle Wiggily and the Rich Cat 148
XXIIIUncle Wiggily and the Horse 155
XXIVUncle Wiggily and the Cow 161
XXVUncle Wiggily and the Camping Boys 167
XXVIUncle Wiggily and the Birthday Cake 175
XXVIIUncle Wiggily and the New Year's Horn 184

XXVIIIUncle Wiggily's Thanksgiving 190
XXIXUncle Wiggily at the Circus 197
XXXUncle Wiggily and the Lion 204
XXXIUncle Wiggily and the Tiger 210
XXXIIUncle Wiggily and the Elephant 215
XXXIIIUncle Wiggily and the Camel 221
XXXIVUncle Wiggily and the Wild Rabbit 229
XXXVUncle Wiggily and the Tame Squirrel 237
XXXVIUncle Wiggily and the Wolf 243

Uncle Wiggily Longears.
UNCLE WIGGILY'S GREETING
Dear Children:
This is a quite different book from any others you may have read
about me. In this volume I have some adventures with real children,
like yourselves, as well as with my animal friends.
These stories tell of the joyous, funny, exciting and everyday
adventures that happen to you girls and boys. There is the story
about a toothache, which you may read, or have read to you, when
you want to forget the pain. There is a story of a good boy and a
freckled girl. And there is a story about a bad boy, but not everyone
is allowed to read that.
There is a story for nearly every occasion in the life of a little boy or
girl; about the joys of Christmas, of a birthday; about different
animals, about getting lost, and one about falling in a mud puddle.
And there are stories about having the measles and mumps, and
getting over them.
I hope you will like this book as well as you seem to have cared for
the other volumes about me. And you will find some beautiful
pictures in this book.
Now, as Nurse Jane is calling me, I shall have to hop along. But I
hope you will enjoy these stories.
Your friend,

STORY I
UNCLE WIGGILY'S TOOTHACHE
Once upon a time there was a boy who had the toothache. It was
not a very large tooth that pained him, and, really, it was quite
surprising how such a very large ache got into such a small tooth. At
least that is what the boy thought.
"But I'm not going to the dentist and let him pull it!" cried the boy,
holding his hand over his mouth. "And I'm not going to let anybody
in this house pull it, either! So there!" He ran and hid himself in a
corner. Girls aren't that way when they have the toothache—only
boys.
"Perhaps the tooth will not need pulling," said Mother, as she looked
at the boy and saw how much pain he had.
"That's so!" exclaimed Grandma, who was trying to think of some
way in which to help the boy. "Maybe the dentist can make a little
hole in your tooth, Sonny, and fill the hole with cement, as the man
filled the hole in our sidewalk, and then all your pain will stop."
"No, I'm not going to the dentist! I'm not going, I tell you!" cried
Sonny. And I think he stamped his foot on the floor, the least little
bit. It may have been that he saw a tack sticking up, and wanted to
hammer it down with his shoe. But I am afraid it was a stamp of his
foot; and afterward that boy was sorry.
But, anyhow, his tooth kept on aching, and it was the kind called
"jumping," for it was worse at one time than another. Sometimes the
boy thought the pain jumped from one side of his tongue to the
other side, and again it seemed that it leaped away up to the roof of
his mouth.

The toothache even seemed to turn somersaults and peppersaults,
and once it appeared to jump over backward. But it never
completely jumped away, which is what the boy wished it would do.
"You'd better let me take you to the dentist's," said his Mother. "He'll
either fix the tooth so it won't ache any more, or he'll take it out, so
a new tooth will grow in. And, really, the pain the dentist may cause
will only be a little one, and it will be all over in a moment. While
your tooth may ache all night."
"No, I'm not going to the dentist! I'm not going!" cried Sonny boy,
and then again he acted just as if there were a tack in the carpet
that needed hammering down with his foot.
Now it was about this time that Uncle Wiggily Longears, the bunny
rabbit gentleman, was hopping from his hollow stump bungalow in
the woods to go look for an adventure. But, as yet, Uncle Wiggily
knew nothing about the boy with the toothache. That came a little
later.
"Are you going to be gone long?" asked Nurse Jane Fuzzy Wuzzy,
the muskrat lady housekeeper, of the bunny gentleman.
"Only just long enough to have a nice adventure," answered Mr.
Longears, and away he hopped on his red, white and blue striped
rheumatism crutch, with his pink, twinkling nose held in front of him
like the headlight on a choo-choo train.
Now, as it happened, Uncle Wiggily's hollow stump bungalow was
not far from the house where the Toothache Boy lived, though the
boy had never seen the rabbit's home. He had often wandered in the
woods, almost in front of the bunny's bungalow, but, not having the
proper sort of eyes, the boy had never seen Uncle Wiggily. It needs
very sharp eyes to see the creatures of the woods and fields, and to
find the little houses in which they live.
At any rate the boy had never noticed Uncle Wiggily, though the
bunny gentleman had often seen the boy. Many a time when you go
through the woods the animal folk look out at and see you, when
you never even know they are there.

And pretty soon Uncle Wiggily hopped right past the house where
the Toothache Boy lived. And just then, for about the tenth time,
Mother was saying:
"You had better let me take you to the dentist and have that
toothache stopped, Sonny."
"No! No! I don't want to! I—I'm a—a—I guess it will stop itself," said
the boy, hopeful like.
Uncle Wiggily, hiding in the bushes in front of the boy's house, sat
up on his hind legs and twinkled his pink nose. By a strange and
wonderful new power which he had, the bunny gentleman could
hear and understand boy and girl talk, though he could not speak it
himself. So it was no trouble at all for Uncle Wiggily to know what
that boy was saying.
"He's afraid; that's what the boy is," said the bunny uncle to himself,
leaning on his red, white and blue striped crutch. "He's afraid to go
to the dentist and have that tooth filled, or pulled. Now that's very
silly of him, for the dentist will not hurt him much, and will soon stop
the ache. I wonder how I can make that boy believe this? His
mother and grandmother can't seem to."
For Mr. Longears heard Mother and Grandma trying to get that
Toothache Boy to let them take him to the dentist. But the boy only
shook his head, and made believe hammer tacks in the carpet with
his foot, and he held his hand over his mouth. But, all the while, the
ache kept aching achier and achier and jumping, leaping, tumbling,
twisting, turning and flip-flopping—almost like a clown in the circus.
"No! No! I'm not going to the dentist!" cried the boy.
Then Uncle Wiggily had an idea. He could look in through the
window of the house and see the boy. In front of the window was a
grassy place, near the edge of the wood, and close by was an old
stump, shaped almost like the easy chair in a dentist's office.
"I know what I'll do," said Uncle Wiggily. "I'll make believe I have
the toothache. I'll go get Dr. Possum and I'll sit down in this stump

chair. Then I'll tell Dr. Possum to make believe pull out one of my
teeth."
"I s'pose if Nurse Jane were here she might ask what good that
would do?" thought Uncle Wiggily. "But I think it will do a lot of
good. If that boy sees me, a rabbit gentleman, having a tooth
pulled, which is what he will think he sees, it may make him brave
enough to go to the dentist's. I'll try it."
Away hopped Uncle Wiggily to Dr. Possum's office.
"What's the matter? Rheumatism again?" asked the animal doctor.
"No, but I want you to come over and pull a tooth for me," said
Uncle Wiggily, blinking one eye, and twinkling his pink nose
surreptitious-like.
"Pull a tooth! Why, your teeth are all right!" cried Dr. Possum.
"It's to give a little lesson to a boy," whispered the bunny, and then
Dr. Possum blinked one eye, in understanding fashion.
A little later Uncle Wiggily sat himself down on the old stump that
looked like a chair, and Dr. Possum stood over him.
"Open your mouth and show me which tooth it is that hurts," said
Dr. Possum, just like a dentist.
"All right," answered Uncle Wiggily, and, from the corner of his left
eye the bunny gentleman could see the Toothache Boy at the
window looking out. The boy saw the rabbit and Dr. Possum at the
old stump, and he saw Mr. Longears open his mouth and point with
his paw to a tooth.
"Oh, Mother!" cried the boy, very much excited. "Look! There's a
funny rabbit, all dressed up in a tall silk hat, having a tooth pulled.
Grandma, look!"
"Well, I do declare!" murmured the old lady. "Isn't that perfectly
wonderful! I didn't know that animals ever had the toothache!"

"Oh, I s'pose they do, once in a while," said the Toothache Boy's
mother. "But see how brave that rabbit gentleman is! Not to mind
having the animal dentist stop his ache! Just fancy!"
Neither Grandma nor Mother said anything to Sonny Boy. All three of
them just stood at the window, and watched Uncle Wiggily and Dr.
Possum. And, as they looked, Dr. Possum put a little shiny thing, like
a buttonhook, in the bunny gentleman's mouth. He gave a sudden
little pull and, a moment later, held up something which sparkled in
the sun. It was only a bit of glass, which Uncle Wiggily had held in
his paw ready for this part in the little play, but it looked like a tooth.
"Well, I declare!" laughed Grandma. "The bunny had his tooth
pulled!"
"And he doesn't seem to mind it at all," added Mother.
Surely enough, Uncle Wiggily hopped off the make-believe dentist-
stump, and with his red, white and blue striped rheumatism crutch,
began to dance a little jiggity-jig with Dr. Possum.
"This dance is to show that it doesn't hurt even to have a tooth
pulled; much less to have one filled," said the bunny.
"I understand!" laughed Dr. Possum. And as he and Uncle Wiggily
danced, they looked, out of the corners of their eyes, and saw the
Toothache Boy standing at the window watching them.
"Well, I never, in all my born days, saw a sight like that!" exclaimed
Grandma.
"Nor I," said Mother. "Isn't it wonderful!"
Sonny Boy took his hand down from his mouth.
"I—I guess, Mother," he said, as he saw Uncle Wiggily jump over his
crutch in a most happy fashion, "I guess I'll go to the dentist, and
have him stop my toothache!"
"Hurray!" softly cried Uncle Wiggily, who heard what the boy said.
"This is just what I wanted to happen, Dr. Possum! Our little lesson
is over. Now we may go!"

Away hopped the bunny, to tell Nurse Jane about the strange
adventure, and Dr. Possum, with his bag of powders and pills on his
tail, where he always carried it, shuffled back to his office.
Sonny Boy went to the dentist's, and soon his tooth was fixed so it
would not ache again. He hardly felt at all what the dentist did to
him.
"I—I didn't know how easy it was 'till I saw the rabbit have his tooth
pulled," said the boy to the dentist.
"Hum," said the dentist, noncommittal-like, "some rabbits are very
funny!"
And if the puppy dog doesn't waggle his tail so hard that he knocks
over the milk bottle when it's trying to slide down the doormat, I
shall have the pleasure, next, of telling you the story of Uncle
Wiggily and the freckled girl.

STORY II
UNCLE WIGGILY AND THE FRECKLED GIRL
Uncle Wiggily was hopping through the woods one summer day,
when, as he happened to stop to get a drink of some water that the
rain-clouds had dropped in the cup of a Jack-in-the-pulpit flower, the
bunny gentleman heard a girl saying:
"Oh, I wish I could get them off! I wish I could scrub them off with
sandpaper, or something like that! I've tried lemon juice and vinegar,
but they won't go. And oh, they make me so homely!"
Uncle Wiggily stopped suddenly and rubbed the end of his pink,
twinkling nose with the brim of his tall, silk hat.
"This is very queer," said the bunny uncle to himself. "I wonder what
is it she has tried to take off with lemon juice? She seems very
unhappy, this little girl does."
The bunny uncle looked through the trees and, seated on a green,
mossy stump, he saw a girl about ten or twelve years old. She held
a looking-glass in her hand, and as she glanced at her likeness in the
mirror she kept saying:
"How can I get them off? How can I make them disappear so I will
be beautiful? Oh, how I hate them!"
"What in the world can be the matter?" thought Uncle Wiggily to
himself. For, as I have told you, the bunny gentleman was now able
to hear and understand the talk of girls and boys, though he could
not himself speak that language.
He hopped a little closer to the unhappy girl on the green, mossy
stump, but the bunny stepped so softly on the leaf carpet of the
forest that scarcely a sound did he make, and the girl with the mirror
never heard him.

"I wonder if I said a little verse, such as I have read in fairy books,
whether they would go away?" murmured the girl. "I've tried
everything but that. I'll do it—I'll say a magical verse! But I must
make up one, for I never have read of the kind I want in any book."
She seemed to be thinking deeply for a moment and then, shutting
her eyes, and looking up at the sun which was shining through the
trees of the wood, the girl recited this little verse:
"Sun, sun, who made them come,
Make them go away.
Then I'll be like other girls,
Happy all the day!"
"This is like a puzzle, or a riddle," whispered Uncle Wiggily to
himself, as he kept out of sight behind a bush near the stump.
"What is it she wants the sun to make go away? It can't be rain, or
storm clouds, for the sky is as blue as a baby's eyes. I wonder what
it is?"
Then, as the girl took up the mirror again, and looked in it, Uncle
Wiggily saw the reflection of her face.
It was covered with dear, little brown freckles!
"Ho! Ho!" softly crooned Uncle Wiggily to himself. "Now I
understand. This girl is unhappy because she is freckled. She thinks
she doesn't look pretty with them! Why, if she only knew it, those
freckles show how strong and healthy she is. They show that she
has played out in the fresh air and sunshine, and that she will live to
be happy a long, long while. Freckles! Why, she ought to be glad she
has them, instead of sorry!"
But the girl on the stump kept her eyes shut, clenching the mirror in
her hand and as she held her face up to the sun she recited another
verse of what she thought was a mystic charm.
This is what she said:

"Freckles, freckles, go away!
Don't come back any other day.
Make my face most fair to see,
Then how happy I will be!"
Slowly, as Uncle Wiggily watched, hidden as he was behind the
bush, the girl opened her eyes and held up the looking-glass. Over
her shoulder the bunny gentleman could still see the freckles in the
glass; the dear, brown, honest, healthy freckles. But when the girl
saw them she dropped the mirror, hid her face in her hands and
cried:
"Oh, they didn't go 'way! They didn't go 'way! Now I never can be
beautiful!"
Uncle Wiggily twinkled his pink nose thoughtfully.
"This is too bad!" said the bunny gentleman. "I wonder how I can
help that girl?" For, since he had helped the Toothache Boy by letting
Dr. Possum pretend to pull an aching tooth, the bunny gentleman
wanted do other favors for the children who loved him.
"I'd like to make that girl happy, even with her freckles," said the
bunny. "I'll hop off through the woods, and perhaps I may meet
some of my animal friends who will show me a way."
The bunny gentleman looked kindly at the girl on the stump. She
was sobbing, and did not see him, or hear him, as she murmured
over and over again:
"I don't like freckles! I hate them!"
Away through the woods hopped Uncle Wiggily. He had not gone
very far before he heard a bird singing a beautiful song. Oh, so
cheerful it was, and happy—that song!
"Good morning, Mr. Bird!" greeted Uncle Wiggily, for you know it is
the father bird who sings the sweetest song. The mother bird is so
busy, I suppose, that she has little time to sing. "You are very happy
this morning," the rabbit said to the bird.

"Why, yes, Uncle Wiggily, I am very happy," answered Mr. Bird, "and
so is my wife. She is up there on the nest, but she told me to come
down here and sing a happy song."
"Why?" asked the bunny.
"Because we are going to have some little birds," was the answer.
"There are some eggs in our nest, and my mate is sitting on them to
keep them warm. Soon some little birds will come out, and I will sing
a still happier song."
"That's fine," said Uncle Wiggily, thinking of the unhappy freckled girl
on the stump. "May I see the eggs in your nest?"
"Of course," answered the father-singer. "Our nest is in a low bush,
but it is well hidden. Here, I'll show you. Mrs. Bird will not mind if
you look."
The father bird fluttered to the nest, and Mrs. Bird raised her fluffy
feathers to show Uncle Wiggily some beautiful blue eggs.
"Why—why, they're freckled!" exclaimed the bunny gentleman.
"Aren't you birds sad because you have freckled eggs? Why, your
little birds will be freckled, too! And, if they are girl birds they will
cry!"
"Why?" asked Mr. Bird in surprise. "Why will our girl birdies cry?"
"Because they'll be freckled," answered the bunny. "I just saw a girl
in the woods, crying to break her heart because she is freckled!"
"Nonsense!" chirped Mrs. Bird. "In the first place these are not
freckles on my eggs, though they look so. My eggs are spotted, or
mottled, and they would not be half so pretty if they were not
colored that way. Besides, being spotted as they are, makes them
not so easily seen in the nest. And, when I fly away to get food, bad
snakes or cats can not so easily see my eggs to eat them. I just love
my freckled eggs, as you call them!" laughed Mrs. Bird.
"Well, they are pretty," admitted Uncle Wiggily. "But will your little
birds be speckled, too?"

"Not at all," sang Mr. Bird. "Say, Uncle Wiggily!" he whistled, "if we
could get that girl here so she could see our spotted eggs, and know
how beautiful they are, even if they are what she would call
'freckled'; wouldn't that make her happier?"
"Perhaps it would," said the bunny rabbit. "I never thought of that.
I'll try it! You will not be afraid to let her see your eggs, will you?" he
asked.
"No; for girls are not like some boys—they don't rob the nests of
birds," replied the mother of the speckled eggs. "Bring the unhappy
girl here, and Mr. Bird and I will hide in the bushes while she peeps
into our nest."
"I will!" said Uncle Wiggily.
Away he hopped through the woods, and soon he came to the place
where the freckled girl was still sobbing on the stump.
"Now how can I get her to follow me through the woods, to see the
nest, when I can't talk to her?" whispered Uncle Wiggily.
Then he thought of a plan.
"I'll toss a little piece of tree-bark at her," chuckled the bunny. "That
will make her look up, and when she sees me I'll hop off a little way.
She'll follow, thinking she can catch me. But I'll keep ahead of her
and so lead her to the woods. I want to make her happy!"
The bunny tossed a bit of bark, hitting the girl on her head. She
looked around, and then she saw Uncle Wiggily, all dressed up as he
was with his tall silk hat and his red, white and blue striped
rheumatism crutch.
"Oh, what a funny rabbit!" exclaimed the girl, smiling through her
tears, and forgetting her freckles, for a while at least. "I wonder if I
can catch you?" she said.
"Well, not if I know it," whispered Uncle Wiggily to himself, for he
knew what the girl had said. "But I'll let you think you can," the
bunny chuckled to himself.

He hopped on a little farther, and the girl followed. But just as she
thought she was going to put her hands on the rabbit, Uncle Wiggily
skipped along, and she missed him. But still she followed on, and
soon Uncle Wiggily had led her to the bushes where the birds had
built their nest.
Mr. and Mrs. Bird were watching, and when they saw Uncle Wiggily
and the freckled girl, Mr. Bird began to sing. He sang of blue skies,
or rippling waters of sunshine and sweet breezes scented with apple
blossoms.
"Oh, what a lovely song!" murmured the freckled girl. "Some birds
must live here. I wonder if I could see their nest and eggs? I
wouldn't hurt them for the world!" she said softly.
Uncle Wiggily shrank back out of sight. The girl looked around for
the singing birds, and just then the wind blew aside some leaves and
she saw the nest. But she saw more than the nest, for she saw the
eggs that were to be hatched into little birds. And, more than this;
the girl saw that the eggs were spotted or mottled—freckled as she
was herself!
"Oh! Oh!" murmured the girl, clasping her hands as she looked down
at the speckled eggs in the nest. "They have brown spots on, just
like my face. They are freckled eggs—but, oh, how pretty they are! I
never knew that anything freckled could be beautiful! I never knew!
Oh, how wonderful!"
As she stood looking at the eggs, Mr. Bird sang again, a sweeter
song than before, and the wind blew softly on the freckled face of
the unhappy girl—no, not unhappy now, for she smiled, and there
were no more tears in her eyes.
"Oh, how glad I am that the funny rabbit led me to the nest of
freckled eggs!" said the girl. "I wonder where he is?"
She looked around, but Uncle Wiggily had hopped away. He had
done all that was needed of him.

The mother bird softly fluttered down into her nest, covering the
beautiful mottled eggs with her downy wings. She was not afraid of
the girl. The girl reached out her hand and timidly stroked the
mother bird. Then she gently touched her own freckled cheeks.
"I'm never going to care any more," she whispered. "I did not know
that freckles could be so pretty. I'm glad I got 'em!"
The freckled girl walked away, leaving the mother bird on the nest,
while the father of the speckled eggs, that soon would be little birds,
sang his song of joy. The freckled girl, with a glad smile on her face,
went back to the stump, and, without looking into the mirror, she
tossed the bit of looking-glass into a deep spring.
"I don't need you any more," she said, as the glass went sailing
through the air. "I know, now, that freckles can be beautiful!"
And if the pussy cat doesn't think the automobile tire is a bologna
sausage, and try to nibble a piece out to make a sandwich for the
rag doll's picnic, I'll tell you next about Uncle Wiggily and the mud
puddle.

STORY III
UNCLE WIGGILY AND THE MUD PUDDLE
Did you ever fall down in a mud puddle? Perhaps this may have
happened to you when you were barefooted, with old clothes on, so
that it did not much matter whether you splashed them or not.
But that isn't what I mean.
Did you ever fall into a mud puddle when you had on your very best
clothes, with white stockings that showed every speck of mud? If
anything like that ever happened to you, when you were going to
Sunday-school, or to a little afternoon tea party, why, you know how
dreadfully unhappy you felt! To say nothing of the pain in your knees!
Well, now for a story of how a little boy named Tommie fell in a mud
puddle, and how Uncle Wiggily helped him scrub the mud off his white
stockings—off Tommie's white stockings I mean, not Uncle Wiggily's.
Tommie was a little boy who lived in a house on the edge of the wood,
near where Uncle Wiggily had built his hollow stump bungalow. No,
Tommie wasn't the same little boy who had the toothache. He was quite
a different chap.
One day the postman rang the bell at Tommie's house, and gave
Tommie a cute little letter.
"Oh, it's for me!" cried Tommie. "Look, Mother! I have a letter!"
"That's nice," said Mother. "Who sent it to you?"
"I'll look and tell you," answered the little boy. The writing in the letter
was large and plain, and though Tommie had not been to school very
long he could read a little. So he was able to tell that the letter was from
a little girl named Alice, who wanted him to come to a party she was
going to have one afternoon a few days later.
"Oh, may I go?" Tommie asked his mother.
"Yes," she answered.

"And wear my best clothes?"
"Surely you will put on your best clothes to go to the party," said Mother.
"And I hope you have a nice time!"
Tommie hoped so, too. But if only he had known what was going to
happen! Perhaps it is just as well he did not, for it would have spoiled
his fun of thinking about the coming party. And half the fun of nearly
everything, you know, is thinking about it beforehand, or afterward.
At last the day came for the tea party Alice was to give at her home,
which was a little distance down the street from Tommie's house.
"Oh, how happy I am!" sang Tommie, as he ran about the porch.
But when, after breakfast, it began to rain, Tommie was not so happy.
He stood with his nose pressed against the glass of the window until it
was pressed quite flat. I mean his nose was flat, for the glass was that
way anyhow, you know. And Tommie watched the rain drops splash
down, making little mud puddles in the street.
"Can't I go to Alice's party if it rains?" asked Tommie.
"Well, no, I think not," Mother answered. "But perhaps it will stop
raining before it is time for you to go. You don't have to leave here until
after lunch."
Tommie turned again to press his nose against the glass, glad that the
rain was outside, so that the drops which rolled down the window could
not wet his face. And he hoped the clouds would clear away and that
the sun would shine before the time for the party.
Now about this same hour Uncle Wiggily Longears, the bunny rabbit
gentleman, was also looking out of the window of his hollow stump
bungalow in the woods, wondering, just as Tommie wondered, whether
the rain would stop.
"But surely you won't go out while it is still raining," said Nurse Jane
Fuzzy Wuzzy, the muskrat lady housekeeper.
"No," answered Uncle Wiggily, "my going out is not so needful as all
that. I was going to look for an adventure, and I had rather do that in
the sunshine than in the rain. I can wait."

And then, almost as suddenly as it had started, the rain stopped.
"Oh, I'm so glad!" sang Tommie, as he danced up and down. "Now I can
go to the party!"
"And I can go adventuring," said Uncle Wiggily. Now of course he did
not hear Tommie, nor did the little boy hear the bunny. But, all the
same, they were to have an adventure together.
Tommie had been ready, for some time, to start down the street to go to
the party Alice was giving for her little girl and boy friends. All that
Tommie needed, now, was to have his collar and tie put on, and his hair
combed again, for it had become rather tossed and twisted topsy-turvy
when he pressed his head against the window, watching the rain.
"Be careful of mud puddles!" Tommie's mother called to him, as, all
spick and span, he started down the street toward the home of Alice, a
block or so distant. "Don't fall in any puddles!"
"I'll be careful," Tommie promised.
And as Uncle Wiggily started out about this same time for his adventure,
Nurse Jane called to the bunny:
"Be careful not to get wet on account of your rheumatism."
"I'll be careful," promised Uncle Wiggily, just as Tommie had done.
Now everything would have been all right if Tommie had not stubbed his
toe as he was going along the street, about half way to the party. But he
did stumble, where one sidewalk stone was raised up higher than
another, and, before he could save himself, down in the mud puddle fell
poor Tommie! He fell on his hands and knees, and they were both
soaked in the muddy water of the puddle on the sidewalk.
Of course it did not so much matter about Tommie's hands. He could
easily wash the mud and brown water off them. But it was different with
his white stockings. Perhaps I forgot to tell you that Tommie wore white
stockings to the party. But he did, and now the knees of these stockings
were all mud!
And as he looked at his mud-soiled stockings, and at his hands, from
which water was dripping down on the sides of his legs, Tommie could
not help crying.

"I can't go to the party this way!" sobbed Tommie to himself, for he was
big enough to go down the street alone, and there were no other
children on it just then. "I can't go to the party this way! But if I go
home Mother will make me change my things, and I'll be late, and
maybe she won't let me go at all! Oh, dear!"
And in order to keep out of sight of any other boys or girls who might
come along, Tommie stepped behind some bushes that grew along the
street.
And what was his surprise to see, sitting on a stone, behind this same
bush, an old gentleman rabbit, wearing glasses, and with a tall silk hat
on his head. On the ground beside him was a red, white and blue
striped crutch, for rheumatism.
But the funniest thing about the rabbit gentleman (who, as you have
guessed, was Uncle Wiggily), the funniest thing was that he had a
bunch of dried grass in one paw, and he was busy scrubbing some dried
spots of mud off his trousers. So busy was Uncle Wiggily doing this that
he neither saw nor heard Tommie come behind the bush. And Tommie

was so surprised at seeing Uncle Wiggily that the little boy never said a
word.
"Why—why!" thought Tommie, as he saw the bunny take up a pine tree
cone, which was like a nutmeg grater, and scrape the dried mud off his
trousers, "he must have fallen into a mud puddle just as I did!"
And that is just what had happened to Uncle Wiggily. He had been
walking along, thinking of an adventure he might have, when he
splashed into a puddle and spattered himself with mud!
But, instead of crying, Uncle Wiggily set about making the best of it—
cleaning himself off so he would look nice again, to go in search of an
adventure.
"I'll let the mud dry in the sun," said Uncle Wiggily out loud, speaking to
himself, with his back partly turned to Tommie. "Then it will easily
scrape off."
The sun was so warm, after the rain, that it soon dried the mud on the
bunny gentleman's clothes, and with the bunch of grass, and the sharp
pine tree cone, he soon had loosened the bits of dirt.
"Now I'm all right again," said Uncle Wiggily out loud. And though of
course Tommie did not understand rabbit talk, the little boy could see
what Uncle Wiggily had done to help himself after the mud puddle
accident.
"I say!" cried Tommie, before he thought, "will you please lend me that
pine tree cone clothes brush? I want to clean the mud off my white
stockings so I can go to the party!"
Uncle Wiggily looked up in surprise! He had not known, before, that
Tommie was there; but the bunny heard what the little boy said. With a
low and polite bow of his tall silk hat, Uncle Wiggily tossed the bunch of
grass and the pine cone to Tommie. By that time the mud had dried so
the little boy could scrape most of it off his stockings.
"I hope you have a nice time at the party," said Uncle Wiggily, in rabbit
language, of course. And then, as Tommie scraped the last of the dried
mud away, leaving only a few spots on his stockings, the bunny
gentleman hopped out of the bush and on his way.

"And I can go to Alice's house without having to run home to change my
stockings," thought Tommie. "I wonder who that rabbit was?"
And when Tommie reached the party he found that he was not the only
little boy who had fallen in a mud puddle. The same thing had happened
to Sammie and Johnnie, two other boys.
"But how did you get your stockings so clean, without going home and
changing them?" asked the other boys of Tommie.
"Oh, an old rabbit gentleman, with a tall silk hat and a red, white and
blue crutch showed me how to scrape off the dried mud with a pine
cone," Tommie answered. "I cleaned my white stockings as the bunny
brushed his clothes."
"Oh, is that a fairy story?" cried the boys and girls at Alice's party.
"Well, he looked like a fairy!" laughed Tommie, who had washed his
hands in the bath room at Alice's house, so they were clean for eating
cake and ice cream. "And I'm not afraid of mud puddles any more. I
know what to do if I fall in one," said Tommie.
And if the onion doesn't make tears come into the eyes of the potato
when they're playing tag around the spoon in the soup dish, the next
story will be about Uncle Wiggily and the bad boy.

STORY IV
UNCLE WIGGILY AND THE BAD BOY
Once upon a time there was a bad boy. He lived on the edge of the
wood in which Uncle Wiggily Longears, the bunny rabbit gentleman,
had built his hollow stump bungalow. The bad boy did not know
Uncle Wiggily, but Mr. Longears knew about the bad boy, and so did
Nurse Jane Fuzzy Wuzzy, the bunny's muskrat lady housekeeper.
"Don't ever go near that bad boy's house," said Miss Fuzzy Wuzzy
one morning, as the rabbit gentleman started out with his red, white
and blue striped rheumatism crutch.
"Why not?" asked Uncle Wiggily.
"Because," answered Miss Fuzzy Wuzzy, "that boy will throw stones
at you, and maybe hit you on your pink, twinkling nose."
"He can't throw stones now," said Uncle Wiggily. "He can't find any.
The ground is covered with snow."
"Then he'll throw snowballs at you," said the muskrat lady
housekeeper. "Please keep away from him."
"I'll think about it," promised the bunny gentleman, as he hopped
away, with his tall, silk hat on his head.
Now you know why, once upon a time, there was a bad boy. He was
bad because he threw stones and snowballs at rabbits and other
animals. There were more things bad about him than this, but one is
enough for a story.
Uncle Wiggily hopped on and on, across the fields and through the
woods, and soon he came to the house of the bad boy. It was a
regular house, not a hollow stump bungalow, such as that in which
Mr. Longears lived.

"I wonder if there isn't any way of making that bad boy good?"
thought the bunny rabbit gentleman. "Bad boys aren't of much use
in the world, but good boys, or girls, who put out crumbs for the
hungry birds to eat in winter—they are of great use in the world! I
wonder if I could make that bad boy good?"
But, no sooner had Uncle Wiggily began to wonder in this fashion,
than, all of a sudden, he heard a loud voice shouting:
"Hi! There he is! A rabbit! I'm going to throw a snowball at him!"
Uncle Wiggily looked over his shoulder and saw the bad boy rushing
out of his house, followed by another boy.
"Oh, what a nice, funny rabbit!" cried the second boy. "He looks as if
he came from a circus—all dressed up!"
"I'll make him turn a somersault if I can whang him with a
snowball!" shouted the bad boy, running toward the bunny
gentleman.
"Perhaps I had better be going," said Uncle Wiggily, who could
understand boy and girl talk, though he could not speak it himself.
"I'll wait until some other day about trying to make this boy good."
Mr. Longears started to run, but he had not taken many hops before,
all of a sudden, he felt a sharp, thumping pain in his side, and he
was almost knocked over by a snowball thrown by the bad boy.
"Hi there! I hit him! I hit him!" howled the bad boy, dancing up and
down.
"Yes," sadly said the other chap. "You hit him, but what good did it
do?"
"It shows I'm a straight shot!" proudly answered the other. "Maybe I
can catch that rabbit now."
He ran over the snow. But though Uncle Wiggily had been knocked
down by the ball thrown by the bad boy, the rabbit gentleman
managed to get to his feet, and away he hopped on his rheumatism
crutch—so fast that the bad boy could not get him.

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Modern Auditing and Assurance Services 6th Edition Leung Solutions Manual

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