Assume that after completion of all fieldwork on the audit of Andler Company, but prior to issuance of the audit report, the senior on the engagement informed the engagement partner that he just discovered that his wife has an immaterial investment in Andler Company stock. Which of the following is most accurate as to AICPA Code of Professional Conduct requirements? Multiple Choice The CPA firm must resign the engagement. No action is necessary since he was unaware of his wife’s investment while performing the audit. The CPA firm should evaluate the significance of the breach on the engagement team’s integrity, objectivity and professional skepticism and ability to issue an audit report and then take proper action. The senior’s performance on the audit should be reviewed by the engagement partner to determine that the work performance was acceptable.
Assume that after completion of all fieldwork on the audit of Andler Company, but prior to issuance of the audit report, the senior on the engagement informed the engagement partner that he just discovered that his wife has an immaterial investment in Andler Company stock. Which of the following is most accurate as to AICPA Code of Professional Conduct requirements?
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The CPA firm must resign the engagement.
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No action is necessary since he was unaware of his wife’s investment while performing the audit.
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The CPA firm should evaluate the significance of the breach on the engagement team’s integrity, objectivity and professional skepticism and ability to issue an audit report and then take proper action.
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The senior’s performance on the audit should be reviewed by the engagement partner to determine that the work performance was acceptable.
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