Question - The Mobile Home Manufacturing Company is audited by Rossi and Montgomery, CPAs. Mobile Home has decided to issue stock to the public and wants Rossi and Montgomery to perform all the audit work necessary to satisfy the requirements for filing with the SEC. The CPA firm has never had a client go public before.
a) What are the ethical implications of Rossi and Montgomery's accepting the engagement?
b) List the additional problems confronting the auditors when they file with the SEC as compared to dealing with a regular audit client.