Huang is an investment adviser for high-net-worth clients. Huang’s responsibility is to assist new clients complete the extensive documentation needed in opening an account. These signed documents give access to client assets and the discretion to trade on behalf of the client. Because Huang is new and not familiar with firm procedures and is afraid of making mistakes with the documents. Therefore, he uses erasable ink in completing the documentation so he can easily fix any mistakes without having to go back to the client for additional signatures. Comment the action of Huang

Huang is an investment adviser for high-net-worth clients. Huang’s responsibility is to assist new clients complete the extensive documentation needed in opening an account. These signed documents give access to client assets and the discretion to trade on behalf of the client. Because Huang is new and not familiar with firm procedures and is afraid of making mistakes with the documents. Therefore, he uses erasable ink in completing the documentation so he can easily fix any mistakes without having to go back to the client for additional signatures. Comment the action of Huang

Business/Professional Ethics Directors/Executives/Acct

8th Edition

ISBN:9781337485913

Author:BROOKS

Publisher:BROOKS

Chapter6: Professional Accounting In The Public Interest

Section: Chapter Questions

Problem 27Q

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