Based upon the below 4 situations - explain your position of "why" or "why not" the following circumstances would have violated the professions ethical standards when you are a practicing CPA?
- Expressed an unmodified opinion on the current year's financial statements when fees for the prior year's audit were unpaid.
- Recommended a controller's position description with candidate specifications to an audit client.
- Purchased a CPA firm's practice of monthly write-ups for a percentage of fees to be received over a 3 year period.
- Made arrangements with a financial institution to collect notes issued by a client in payment of fees due for the current year's audit.
Sarbanes Oxley requires that per Section 404 that Internal Controls within a publicly held company are to be reviewed, evaluated and tested at year end to insure that adequate controls are in place. In addition to understanding the Internal Controls present within your client's company, the auditor must also evaluate whether these controls are in place, and implemented. How does an auditor evaluate these controls to see that they are working and in place?