Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Alex, a member, provides various attest and non-attest services to Bisk & Associates and has been doing so for approximately fifteen years. During this fifteen

image text in transcribedimage text in transcribed

Alex, a member, provides various attest and non-attest services to Bisk & Associates and has been doing so for approximately fifteen years. During this fifteen year association with Bisk & Associates there have been no major disagreements or disputes between the parties and Alex has always provided timely and responsive services to the client. Alex prepared a financial statement for Bisk & Associates for the year 20X2 which was submitted to Bisk & Associates' bank for the purpose of obtaining credit. The financial statement was completed by Alex in February 20x3 and submitted to the bank in March 20X3. In May 20X3, Bisk & Associates discovered that their bookkeeper had committed fraud and had stolen approximately $100,000 from the company over a three year period. As a result of this discovery, Bisk & Associates initiated a claim for malpractice against Alex. When Alex was informed of the claim she immediately contacted her professional liability insurance carrier as required by the carrier. Which of the following is a violation of the prohibition against disclosure of confidential client information? Complying with the insurance carrier's request for Bisk & Associates' general ledger. Reviewing all correspondence and emails between Alex and Bisk & Associates for the past three years with a professional colleague who had been previously sued for malpractice by one of their clients. Complying with the insurance carrier's request for all correspondence and emails between Alex and Bisk & Associates for the past three years. Both a. and c. are violations of the prohibition against disclosure of confidential client information. Both b. and c. are violations of the prohibition against disclosure of confidential client information. Su & Wong, CPA's is not independent with respect to Radar Corporation because the firm provides bookkeeping services for the client and makes management decisions regarding check coding. Zee & Brock, CPA's is performing an attest engagement for Radar Corporation and is using professional staff from Su & Wong, CPA's on the engagement. Is Zee & Brock, CPA's independence with respect to Radar Corporation impaired due to the use of Su & Wong, CPA's employees on the attest engagement? Yes, independence is impaired. No, independence is not impaired. Independence is only impaired if a partner from Su & Wong, CPA's participates on the attest engagement. Independence is only impaired if Su & Wong, CPA's are included within the attest engagement letter with Radar Corporation

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Integrated Reporting And Audit Quality An Empirical Analysis In The European Setting

Authors: Chiara Demartini, Sara Trucco

1st Edition

3319488252, 9783319488257

More Books

Students also viewed these Accounting questions