1.Sally Adams is an auditmanager for the firm of Jones & Smith, CPAs, and is assigned to the audit of Libra Fashions, Inc. Near the middle of the audit, Sally was offered the job of Libra's chief financial officer.

Required:

a.Discuss the implications of this offer assuming Libra is a nonpublic corporation.

b.Discuss the implications of this offer assuming Libra is a public company.

2.Glover, Inc., engaged Herd & Irwin, CPAs, to assist in the installation of a new computerized production system. Because the firm did not have experienced staff available for the engagement, Herd & Irwin assigned several newly hired staff assistants without sufficient supervision. As a result, Glover, Inc., incurred significant losses when the production system crashed, causing significant backlogs and lost product sales.

Required:

Describe the possible legal implications of this situation for Herd & Irwin.

3. Financial statements contain a number of assertions about account balances, classes of transactions, and disclosures.

a.Identify who makes these assertions.

b.List and describe each of the assertions regarding each financial statement component.