Question
3-31 45 Robert Lewandowski, the owner of iEat Inc., a private company that designs and installs interactive computer display terminals in coffee shops and
3-31 45 Robert Lewandowski, the owner of iEat Inc., a private company that designs and installs interactive computer display terminals in coffee shops and restau- rants, recently switched auditors and hired his friend Chris Persson to perform the company's annual financial state- ment audit. iEat needs the audit as part of its financing arrangement with a private lender. Chris recently received his Chartered Professional Accountant (CPA) designation and was eager to make some money to pay off his student loans. So he offered Robert a discount and promised to perform the audit for 15 percent less than any other accounting firm. To appease the private lender, Robert told Chris that iEat must have a clean audit opinion. Chris told Robert that it should not be a problem as he recently wrote the Certified Fraud Examiner exam, and because of that his work would be superior to that of other "older" auditors who may not be as up-to-date on the most recent auditing and accounting standards. Chris also felt obligated to help his friend, as two years ago Robert co-signed on a mortgage for Chris's condo. Since Chris trusted Robert he did not bother to communi- cate with the previous auditor of iEat. By discounting his audit fee and promising to perform audits better and faster than other accounting firms, over a short period of time, Chris was able to add a few other clients. When the iEat audit was scheduled to start in March 2018, Chris was so busy with other audits and the preparation of corporate tax returns for his audit clients tha he had no time to conduct the iEat audit. Instead, he hired Adam and Ewa, two recent university accounting graduate to do the work. Chris told Adam and Ewa to quickly review their un- versity audit textbook and begin the iEat audit immediately Ile instructed them to first draft a clean audit opinion and email it to him and in three weeks return back with an an file that would sunnort the drafted clean opinion. Burdenc
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