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How does rotation of the audit partner (as required by SOX and the SEC) interact with the need for industry knowledge and risk of performing an audit?
In the current environment, what situations create these vulnerabilities for auditors?
Discuss the issue of the level of risk an auditor may associate with performing the audit of a not-for-profit organization
Discuss a recent (or not-so recent) fraud that you have read about, either in the textbook or in the news.
What specific moral or ethical obligations, if any, would these circumstances impose on this accounting firm?
what has been done to strengthen the audit function since the cases occurred, and what has not been (or cannot be) done to reduce the likelihood
Fieldwork is very important when you consider that this is where you will conduct all of your actual testing of account balances, transactions, and managements)
Raymond learned of the rollover method and iron curtain method for evaluating the performance materiality of misstatements.
How do auditors use the rollover method and iron curtain method to evaluate uncorrected misstatements?
Welch Manufacturing Corporation for the year ended December 31, your post balance- sheet substantive procedures disclosed the following items:
How does the misstatement identified in 2014 affect net income, assets, liabilities, and equity? (Assume a 35 percent tax rate for Connell.)
The board of directors of Evans Industries Inc. engaged Maxfield & Murphy, CPAs, to audit the financial statements for the year ended December 31, 2014.
Why is it important for accountants to remain ethical and "protect the public"? What are the ethics of disclosure?
However, CPAs charged with "malpractice" must prove their innocence. Do you feel the potential legal liability for CPAs exceeds that of physicians?
Are the AICPA rules and the PCAOB rules the same with respect to commissions and referral fees?
Do you feel a gap exists between the credibility of the accounting profession and the public's perception of the accounting profession?
What characteristics would you look for when considering employment with an accounting firm?
Analyze the AICPA Rules of Professional Conduct and the IMA Code of Professional Conduct for Managerial Accountants.
One think I notice is that section 100 of the Rules of the Code of Conduct discusses independence, objectivity, and integrity.
What do you feel the audit committee's role is in maintaining independence? Do you feel this role is effective?
In 2013, the Journal of Accountancy had a short article regarding independence of fact vs. appearance with respect to CPAs.
What is the relationship between the mortgage crisis of 2008 and the corporate responsibility and ethics?
Perhaps, the conviction of white-collar criminals brings an awareness needed to deter future corporate fraud.
Evidence obtained from observation is considered more reliable than from inquiry.
Evidence obtained from independent third parties is generally considered more reliable than evidence obtained from auditee personnel.