Accounting: What the Numbers Mean
11th Edition
ISBN: 9781259535314
Author: David Marshall, Wayne William McManus, Daniel Viele
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 1, Problem 1.7E
Exercise 1.7
LO 6
Auditor independence. Using the search engine you are most comfortable with, identify at least five sources concerning the general topic of auditor independence. Write a brief memo to provide an update on the current status of the auditor independence standard-setting process. The Business in Practice box on page 13 should serve as the starting point for this exercise. Note: You might find it useful to contrast the opinions expressed by any of the Big 4 accounting firms to those expressed by nonaccounting professionals.
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Q 3 How would an auditor go about assessing management integrity? Why management’s integrity is considered the most important factor affecting the client acceptance or continuation decision? Suppose you came across a situation in which you have to decide between losing your job as an auditor or write against the corrupt practices of Board of Directors in financial statements. What would you do?
5.
All of these reasons are important to discuss the types of service with management before performing the audit work, except ___________
Question 5 options:
a)
To avoid misunderstanding
b)
To charge more audit hours and fees
c)
To prepare the auditor for the job
d)
To determine the audit procedures required
10
What is the name of the individual that carries out auditing for a company or client called? ______________
Question 10 options:
a)
Actuarial
b)
Professional
c)
Analyst
d)
Auditor
Chapter 1 Solutions
Accounting: What the Numbers Mean
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