Savage, CPA, has been requested by an audit client to perform a nonrecurring engagement involving the implementation
Question:
Savage, CPA, has been requested by an audit client to perform a nonrecurring engagement involving the implementation of a computer information and control system. The client requests that in setting up and converting to the new system, Savage do the following: 1. Counsel on potential expansion of business plans. 2. Arrange interviews for potential new personnel. 3. Recruit and hire a systems supervisor for the company. 4. Instruct and oversee the training of client personnel. 5. Supervise the operation of the new system. 6. Monitor and help prepare source documents and make necessary changes in computer- generated data. Required: Which of these services may Savage perform and which may Savage not perform and retain independence? Give reasons for your answers.
Step by Step Answer:
Auditing An Assertions Approach
ISBN: 9780471134213
7th Edition
Authors: G. William Glezen, Donald H. Taylor