Did PwC behave unethically or immorally in helping Caterpillar develop its Swiss tax strategy? Defend your answer. What specific ethical principles, if any, were violated by the PwC tax consulting services provided to Caterpillar? Explain.

What accounting or financial reporting principles, if any, were violated by Caterpillars Swiss tax strategy? Explain.

Identify the key differences between tax consulting services and independent audit services. Which professional standards govern the provision of tax consulting services? Do these standards require CPAs involved in such services to act in the public interest?

What audit tests should PwC have applied to the Caterpillar financial statement amounts produced or impacted by the companys Swiss tax strategy? Identify the underlying audit objective for each of those tests.

A PwC workpaper for the 2011 Caterpillar audit indicated that the intercompany transaction involving the exchange of cash between CSARL and the U.S.-based parent company had been reviewed by the audit team. What specific audit-related risks are posed by intercompany transactions? What audit objectives would the auditors have had in reviewing the Caterpillar intercompany transaction? What types of audit evidence should the auditors have collected in reviewing that transaction?

Was James Bowers in a position to perform an independent analysis of Caterpillars Swiss tax strategy and the related financial statement implications? Should the audit workpapers have included documentation of his analysis?