GEN COMBO ADVANCED ACCOUNTING; CONNECT ACCESS CARD
13th Edition
ISBN: 9781260087383
Author: Joe Ben Hoyle
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 12, Problem 4DYS
To determine
Draft a report that outlines the Sarbanes–Oxley considerations for a firm such as the Wojtysiak firm. Locate the actual act (Public Law 107-204) or perform a thorough summary and review it prior to preparing the report.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
uestion:1
A privately held company recently outsourced its information processing system to a CPA who also has been asked to conduct the year-end financial statement audit.
Management accepts responsibility for the information processed by the CPA and the CPA will not assume the role of an employee in any way. The statement pertains to AICPA code of conduct rule:
A. Commissions and Referral Fees C. Independence
B. Confidential Client Information D. Integrity and Objectivity
Grant Thornton was appointed as the new auditing firm for a publicly listed IT Company. The auditing firm's Engagement Partner, an IT expert, has just replaced the previous partner only this year. The previous partner left the firm to become the Finance Director of a competitor IT Company. Which of the following ethical principles will be least breached by the previous partner in the given situation?
a.
Confidentiality
b.
Objectivity
c.
Integrity
d.
Professional Competence
3 Curlew Ltd
You work in a mid-tier firm with 54 partners which has been invited by the directors of Curlew Ltd
(Curlew) to accept appointment as external auditor of the company. The assurance firm which currently
performs the external audit will not be re-appointed when its term of office expires.
Curlew is an owner managed business which is run by Mr and Mrs Curlew who are currently the only
directors. You currently audit a number of companies in the same industry sector.
The directors have indicated that they would like your firm to provide the following additional services:
(1) Advice in respect of the purchase of an off-the-shelf IT package as the directors are overwhelmed
by the choice available.
(2) Assistance with the recruitment of a finance director; and provision of advice on the remuneration
package of the prospective finance director.
Requirements
(a) Set out the matters, other than independence and objectivity, to be considered and the
procedures to be performed in order…
Chapter 12 Solutions
GEN COMBO ADVANCED ACCOUNTING; CONNECT ACCESS CARD
Ch. 12 - Prob. 1QCh. 12 - Prob. 2QCh. 12 - Prob. 3QCh. 12 - Prob. 4QCh. 12 - Prob. 5QCh. 12 - Prob. 6QCh. 12 - Prob. 7QCh. 12 - Prob. 8QCh. 12 - Prob. 9QCh. 12 - Prob. 10Q
Ch. 12 - Prob. 11QCh. 12 - Prob. 12QCh. 12 - Prob. 13QCh. 12 - Prob. 14QCh. 12 - Prob. 15QCh. 12 - Prob. 16QCh. 12 - Prob. 17QCh. 12 - What is the purpose of Financial Reporting...Ch. 12 - Prob. 19QCh. 12 - What is the purpose of a registration statement?Ch. 12 - Prob. 21QCh. 12 - Prob. 22QCh. 12 - Prob. 23QCh. 12 - Prob. 24QCh. 12 - Prob. 25QCh. 12 - What is a prefiling conference, and why might it...Ch. 12 - Prob. 27QCh. 12 - Prob. 28QCh. 12 - Prob. 29QCh. 12 - Prob. 30QCh. 12 - Prob. 31QCh. 12 - Prob. 32QCh. 12 - Prob. 33QCh. 12 - What is the purpose of the Managements Discussion...Ch. 12 - Prob. 35QCh. 12 - Prob. 36QCh. 12 - Prob. 1PCh. 12 - Prob. 2PCh. 12 - Prob. 3PCh. 12 - Prob. 4PCh. 12 - Prob. 5PCh. 12 - Prob. 6PCh. 12 - Prob. 7PCh. 12 - Prob. 8PCh. 12 - Which of the following is a registration statement...Ch. 12 - Prob. 10PCh. 12 - Prob. 11PCh. 12 - Prob. 12PCh. 12 - Prob. 13PCh. 12 - Prob. 14PCh. 12 - Prob. 15PCh. 12 - Prob. 16PCh. 12 - Prob. 17PCh. 12 - Prob. 18PCh. 12 - Prob. 19PCh. 12 - Prob. 20PCh. 12 - Prob. 21PCh. 12 - Prob. 22PCh. 12 - Prob. 23PCh. 12 - Prob. 24PCh. 12 - Prob. 25PCh. 12 - Prob. 26PCh. 12 - Explain each of the following items: a. Staff...Ch. 12 - Prob. 28PCh. 12 - Prob. 1DYSCh. 12 - Prob. 2DYSCh. 12 - Prob. 3DYSCh. 12 - Prob. 4DYS
Knowledge Booster
Similar questions
- Attorney Letters. Faye Jaworski, CPA, is auditing the financial statements of FulbrightCompany. As she is nearing the audit completion date, Jaworski realizes that she needs toevaluate whether all material contingencies are properly accounted for and disclosed inFulbright’s financial statements. Because of its size, Fulbright has retained external counsel (Vinson, LLP) to handle its various legal matters.Required:a. List some common procedures that Jaworski will perform with respect to Fulbright’slitigation, claims, and assessments.b. What are the responsibilities of Jaworski, Fulbright, and Vinson with respect to litigation, claims, and assessments?c. Attorney letters are used to provide corroboration of litigation, claims, and assessmentsagainst the client. Briefly describe the process through which attorney letters are prepared, sent, and used in the audit examination.d. What information is normally included in an attorney letter?arrow_forwardYour spouse has just accepted a new job as chief accounting officer at conpany ABC, which is an iesba restricted audit client you are a member of the audit engagement team what are independence inplicationsarrow_forwardWhile performing an audit of a public company, the auditors discovered material illegal acts and resigned due to the client's refusal to disclose them. The auditors' reason for resignation should be disclosed through: Direct Communication The Securities & Item With Shareholders Exchange Committee A. B. C. D. Multiple Choice Yes No Yes No Option C Option D O Option B Option A Yes Yes No Noarrow_forward
- Question 5 Which ONE of the following should be carried out after the audit firm has accepted an engagement as auditor? A Contact the outgoing auditors to ascertain if there are any reasons they should not accept the assignment B Ensure the audit firm has the experience and resources to conduct the assignment C Perform checks to ensure that there are no legal or ethical reasons why the new audit firm cannot act as auditor D Submit a letter of engagement to the directorsarrow_forwardWhich of the following is true?a. Members of an audit engagement team cannot speak with audit client officers about matters outside the scope of the audit while the audit engagement is in progress.b. Audit team members who leave the public accounting firm for employment with auditclients can provide audit efficiencies (next year) because they are very familiar with thefirm’s audit plans.c. Audit team partners who leave the public accounting firm for employment with auditclients can retain variable annuity retirement accounts established in the person’s formerfirm retirement plan.d. The public accounting firm must discuss with the audit client’s board or its audit committee the independence implications of the client’s having hired the audit engagement teammanager as its financial vice president.arrow_forwardQuestion 1 For each of the following scenarios, indicate whether in your opinion it is a violation of the HKICPA Code of Ethics. Specifically, for each scenario, choose one of the following options: (1)not likely to ·be a violation; (2) likely to be aviolation; or (3) clearly a violation. For each- scenario, clearly explain your reasoning. 3. Chan and Mo, CPAS, perform the annual financial statement audit for SoCal Ltd. Ann Mo, the partner in charge of the SoCal audit, owns shares in the Greenfield Investment Company. Greenfieldowns approximately ten percent of the outstanding common stock of SoCal·Ltd. Approximately 60percent of SoCal's common stock is owned by another large investment- fund that is independent of Chan and Mo, CPAS. Consequently, Greenfieldcannot exert significant controlover SoCal. The amount of Ann Mo's investment in Greenfieldis immaterial to her net worth. .. 4. David Lam, CPA, is assignedto serve as the audit manager on the Safety Bank engagement. Davidrecently…arrow_forward
- Directions: Case I: The AICPA Code of Professional Conduct Isaac Newey, CPA, is considering leaving a position at a major public accounting firm to join the staff of a local bookkeeping and advisory firm that does write-up work, tax preparation and planning, and financial planning. The local firm is not owned by CPAS and does not provide attest services. Question: Are the Rules of Conduct applied differently to CPAS who work for a local financial institution like the one described above, as compared to a major public accounting firm?arrow_forward1. Which of the following statements is true? The CPA firm will lose its independence if: A. a staff auditor providing audit services to the client acquires stock in that client. B. a staff tax preparer who provides 15 hours of non-audit services to the client acquires stock in that client. C. an audit manager in an office different than the office providing audit services has a direct, immaterial financial interest in the audit client. D. an audit partner has an indirect, immaterial financial interest in an audit client that he is not in charge of. 2. The correct sequence of the paragraphs in the audit report should be: A. Basis of opinion – Explanatory paragraph – Opinion. B. Opinion - Basis of opinion – Explanatory paragraph. C. Opinion - Explanatory paragraph – Basis of opinion. D. Basis of opinion – Opinion – Explanatory paragraph. 3. The underlying reason for a code of professional ethics for auditing profession is: A. the need for public confidence in the quality of service of…arrow_forwardSmith and Johns, a CPA firm, was approached by Pioneer Company to conduct an audit for its financial statements for the year 2020. Smith and Johns asked Pioneer Company to grant it an approval to contact the predecessor auditor before giving its acceptance on the new engagement. Smith and Johns would most probably inquire the predecessor auditor about the following issue(s): * Management integrity Fraud and illegal acts committed in pri years Reasons for change of auditors All of the above None of the abovearrow_forward
- Question A suggested format for the written representation has been sent by the auditors to the directors of Nananom. The directors have stated that they will not sign the written representation this year on the grounds that they believe the additional evidence that it provides is not required by the auditor. You are required to: (i.) Discuss the action the auditor may take as a result of the decision made by the directors, not to sign the written representation.arrow_forwardQuestion ( Auditing ) The CPA firm of Angeles, Belen, and Cruz was expanding very rapidly. Consequently, it hired several junior accountants, including a man named Dantes. The partners of the firm eventually became dissatisfied with Dantes' production and warned him that they would be forced to discharge him unless his output increased significantly. At that time, Dantes was engaged in audits of several clients. He decided that to avoid being fired, he would reduce or omit entirely some of the standard auditing procedures listed in audit programs prepared by the partners. One of the CPA firm's clients, Best Corp., was in serious financial difficulty and had adjusted several of the accounts being examined by Dantes to appear financially sound. Dantes prepared fictitious working papers in his home at night to support purported completion of auditing procedures assigned to him, although he in fact did not examine the adjusting entries. The CPA firm rendered an unqualified opinion on…arrow_forwardDiscuss whether the chartered accountants/registered auditors identified in each of the situations described below have failed to comply or are in danger of failing to comply with the fundamental ethical principles in the SAICA Code of Professional Conduct (2022). (First state the ethical principles/s and then the explanation for each principle.) Note: Any of the given situations may amount to non-compliance with more than one principle. Q2.1. John Smith is a registered auditor and the engagement partner on the audit of Letsatsi Safaris Ltd, a large company that owns several wildlife game reserves in South Africa and neighbouring countries. One of the perks of being the audit partner of Letsatsi Safaris Ltd, is that the managing director of the client grants a seven night free stay at a five star all inclusive lodge for four people. John is very excited about this prospect. However, in return, the managing director of the client requires an unqualified audit opinionarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Auditing: A Risk Based-Approach to Conducting a Q...AccountingISBN:9781305080577Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:South-Western College Pub
Auditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage Learning
Auditing: A Risk Based-Approach to Conducting a Q...
Accounting
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:South-Western College Pub
Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning