Question
1. Mortimore Beancounter, CPA, is employed by the accounting firm Doolittle & Prosper, LLP .He was assigned to audit Cook & De'Books, Inc. Failing to
1. Mortimore Beancounter, CPA, is employed by the accounting firm Doolittle & Prosper, LLP.He was assigned to audit Cook & De'Books, Inc. Failing to discover that the company's financial statements contained a material mistake, Mortimore rendered an unqualified audit opinion.Unbeknownst to Mortimore, Cook & De'Books later used the statements and his opinion to secure a loan from Last National Bank.Cook & De'Books subsequently went bankrupt.Cook & De'Books and the Bank later sue Mortimore and Doolittle & Prosper for negligence.
a.What professional standards govern Mortimore's audit conduct?
Id like a better explanation on question a, what exactly does it mean and how can I go about answering it?
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