Phillips Petroleum: Advanced Auditing Case Study

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Phillips Petroleum Case Study Prepared by For Professor C.E. Reese in partial fulfillment of the requirements for ACC 502- Advanced Auditing School of Business/ Graduate Studies St. Thomas University Miami Gardens, Fla. Term A1/Spring 2014 February 17, 2014 Table of Contents Issues……………………………………………………………….Page 3-4 Facts………………………………………………………………..Page 4-5 Analysis/ Authority………………………………………………...Page 5-8 Conclusions/ Recommendation…………………………………….Page 8 References………………………………………………………….Page 9-10 Issues Phillips Case Issue 1 Was Bill Grant justified in refusing to provide the requested workpapers to the grand justified in refusing to provide the requested workpapers to the grand jury? Phillips Case…show more content…
Analysis/ Authority 1. Bill Grant wasn’t justified in refusing to provide the requested workpapers to the grand jury because according to PCAOB Section 5. Investigations and Adjudications Rule 5105, Requests for testimony or production of documents from persons not associated with registered public accounting firms, when it comes to part B of the rule documents it is clear that the Board, and the staff of the Board designated in an order of formal investigation, may issue an accounting board request to any person, including any issuer, for the production of any document that is relevant or material to an investigation, with appropriate notice, subject to the needs of the investigation. A request issued pursuant to this Rule shall set forth a reasonable time and place for production, subject to the needs of the investigation. Also, failure to comply with an accounting board request pursuant to Rule 5105 may result in a Board request for the issuance of a Commission subpoena, pursuant to Rule 5111. (PCAOB Rule 5105) 2. A public accounting firm doesn’t have a responsibility to its partners and employees when subpoenaed to testify regarding a client because according to PCAOB Section 5. Investigations and Adjudications Rule 5105, part A Testimony states the Board, and the staff of the Board designated in an order of formal investigation, may issue an accounting board request for the testimony of any person, including any client of a registered public accounting firm,
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