a.
Concept Introduction:
Decision Making−It is the process of making a choice by identifying the decision, collecting relevant information and choosing possible alternatives.
The auditors were to be held responsible for fraud and gross negligence, though not for negligence.
To discuss:If owning stock in client’s firm is inappropriate.
b.
Concept Introduction:
Decision Making−It is the process of making choice by identifying the decision, collecting relevant information and choosing possible alternatives.
The auditors were to be held responsible for fraud and gross negligence, though not for negligence.
To comment: About the auditors being independent.
c.
Concept Introduction:
Decision Making−It is the process of making choice by identifying the decision, collecting relevant information and choosing possible alternatives.
The auditors were to be held responsible for fraud and gross negligence, though not for negligence.
To comment: About the action taken by the company on auditor.
d.
Concept Introduction:
Decision Making−It is the process of making choice by identifying the decision, collecting relevant information and choosing possible alternatives.
The auditors were to be held responsible for fraud and gross negligence, though not for negligence.
To comment: About the unprofessional decision made by the auditor.
e.
Concept Introduction:
Decision Making−It is the process of making choice by identifying the decision, collecting relevant information and choosing possible alternatives.
The auditors were to be held responsible for fraud and gross negligence, though not for negligence.
To State: The services procedures for protecting the career of the tipster.
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- Phillip Dale is a recent employee of RMGT Audit Firm. A new client Juicy Juice Limited has approached RMGT for the audit of its annual reports and Phillip was asked to start the preparation of the audit plan. Phillip knows only too well the importance of audit planning. It involves many considerations that help to develop more efficient engagements and provides auditors with important risk management techniques. Juicy Juice Limited operates in many overseas countries. The company employs over 2000 employees and is known for providing many great benefits for its employees. One of Juicy Juice’s biggest assets is its inventory as the company offers a large variety of products throughout the many overseas countries in which it operates. The company also regularly purchase shareholdings in other companies. The previous auditors of Juicy Juice have stated that the previous year’s audit had revealed extensive material misstatements. Questions A. Discuss FOUR (4) of the…arrow_forward1. Madeline is a CPA and the CFO of ABC Company. Madeline’s sister is Katherine. Katherine is a CPA who just joined the office of Billem and Howe, CPA’s as a Senior Accountant. Katherine has been assigned to the Los Angeles office. ABC Company’s headquarters is in Austin, Texas, which is where Madeline has her office. ABC has asked Billem and Howe to bid on the attest engagement. All of the audit work will be performed from Billem and Howe’s Austin office with no support or coordination from the Los Angeles office. Question: Does it matter if Katherine owns stock in ABC?arrow_forwardYou are an audit supervisor assigned to a new client which is listed on a Stock Exchange. You visited the corporate headquarters to become acquainted with key personnel and to conduct a preliminary review of the company’s accounting policies, controls, and systems. During this visit, (d) You noted that all management authority seems to reside with three brothers, who serve as chief executive officer, president, and financial vice president. Identify the problems and explain them in relation to the internal environment.arrow_forward
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