When employees have a conflict of interest between their personal compensation and provision of truthful financial statem shareholders. the securities regulator, such as the Securities Exchange Commission, should shut down such financial companies. the external auditors should take the word of the employees and the management about the value of such securities the accounting standards' supervisory board should be required to audit such financial companies. the board of directors should approve clear policy guidelines and monitor their enforcement to combat such conflicts
When employees have a conflict of interest between their personal compensation and provision of truthful financial statem shareholders. the securities regulator, such as the Securities Exchange Commission, should shut down such financial companies. the external auditors should take the word of the employees and the management about the value of such securities the accounting standards' supervisory board should be required to audit such financial companies. the board of directors should approve clear policy guidelines and monitor their enforcement to combat such conflicts
Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter10: Auditing Cash And Marketable Securities
Section: Chapter Questions
Problem 67RSCQ
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Transcribed Image Text:When employees have a conflict of interest between their personal compensation and provision of truthful financial statements to
shareholders,
the securities regulator, such as the Securities Exchange Commission, should shut down such financial companies.
the external auditors should take the word of the employees and the management about the value of such securities.
the accounting standards' supervisory board should be required to audit such financial companies.
the board of directors should approve clear policy guidelines and monitor their enforcement to combat such conflicts.
CO
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