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John is an auditor for SFS CPAs. Jack is John's cousin who is the comptrolle UI ohn is not the manager on the audit and

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John is an auditor for SFS CPAs. Jack is John's cousin who is the comptrolle UI ohn is not the manager on the audit and works under Joe who is senior auditor on the udit. Jack and John see each other about six times a year at family reunions and both mothers who are sisters have a very close relationship. Is SFS CPAs independent A. Yes, because Joe is actually the senior on the job. 3. No, because of the appearance of John and Jack plus Jack being the comptroller could in the public view be deemed as SFS not being independent. s, because SFS CPAs have control over both John and Joe which would negate any appearance of being independent. es, if Jack signs a waiver indicating that both he and John are really not not that close. 2. Sally is an associate for SPSC Medicare hospital compliance work and has competent accountant and has received very go for SFS has asked Sally to assist him in the au valuations? Is Sally technically competent to assist Joe in the audit an associate for SFS CPAs. Sally who has been an associate and has specialized in hospital compliance work and has done such for two years. Sally is a very accountant and has received very good evaluations. oe who is a senior auditor asked Sally to assist him in the audit of City B because of her excellent 1. Yes, because Sally has excellent evaluations and that makes her competent. 2. Yes, because Sally can learn about governmental accounting from Joe during the audit. 3. No, because Sally is not technically competent because she has not been properly trained for governmental accounting. 4. No, because Sally does Medicare hospital compliance. oncerning fraud and governmental auditing, a CPA has the following duty during the audit kamination: A. The CPA must test for fraud and make a written assurance that fraud does not exist B. The CPA must test for fraud and advise the city council that fraud either exists or C. The CPA has no duty to test for fraud. D. The CPA must test for fraud and if fraud exists, they must inform the appropriate legislative body; however, they are under no duty to find the fraud. John is an auditor for SFS CPAs. Jack is John's cousin who is the comptrolle UI ohn is not the manager on the audit and works under Joe who is senior auditor on the udit. Jack and John see each other about six times a year at family reunions and both mothers who are sisters have a very close relationship. Is SFS CPAs independent A. Yes, because Joe is actually the senior on the job. 3. No, because of the appearance of John and Jack plus Jack being the comptroller could in the public view be deemed as SFS not being independent. s, because SFS CPAs have control over both John and Joe which would negate any appearance of being independent. es, if Jack signs a waiver indicating that both he and John are really not not that close. 2. Sally is an associate for SPSC Medicare hospital compliance work and has competent accountant and has received very go for SFS has asked Sally to assist him in the au valuations? Is Sally technically competent to assist Joe in the audit an associate for SFS CPAs. Sally who has been an associate and has specialized in hospital compliance work and has done such for two years. Sally is a very accountant and has received very good evaluations. oe who is a senior auditor asked Sally to assist him in the audit of City B because of her excellent 1. Yes, because Sally has excellent evaluations and that makes her competent. 2. Yes, because Sally can learn about governmental accounting from Joe during the audit. 3. No, because Sally is not technically competent because she has not been properly trained for governmental accounting. 4. No, because Sally does Medicare hospital compliance. oncerning fraud and governmental auditing, a CPA has the following duty during the audit kamination: A. The CPA must test for fraud and make a written assurance that fraud does not exist B. The CPA must test for fraud and advise the city council that fraud either exists or C. The CPA has no duty to test for fraud. D. The CPA must test for fraud and if fraud exists, they must inform the appropriate legislative body; however, they are under no duty to find the fraud

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