Case Scenario:
Scenario 1
Allan Camp was hired to conduct an audit of Renee Road Builders, a publicly held corporation in Florida. During the audit, Al determined that the accounts receivable manager was a convicted felon, the company engaged in illegal hiring practices, and the financial statements from two previous years contained significant errors.
- Should Allan mention the felony conviction of the accounts receivable manager?
- What are Allan’s duties as an independent public accountant if, in the course of an audit, he detects information indicating that an illegal act has or may have occurred?
Scenario 2
The owner of a fast-growing wine distribution company wants to import wine from France; however, he is not sure France is the best option. The owner comes to you and asks your opinion. You know that France, Mexico, and Korea are the best sources for obtaining this product. While your research shows wine from France is of the highest quality, the United States imposes a tariff of 8% on the wine, which makes this option non-competitive.
- Which US trade laws should you consider when selecting a source?
- Is there any way by which you can seek a reduction on the tariff? If so, how? If not, why?
- Select an alternative country (Mexico or Korea) for purchasing the wine and explain your reasons for selecting the country.