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Perez, CPA, has been asked by a nonpublic company audit entity to perform a nonrecurring engagement involving implementation of an IT information and control system.

Perez, CPA, has been asked by a nonpublic company audit entity to perform a nonrecurring engagement involving implementation of an IT information and control system. The entity requests that, in setting up the new system and during the period prior to conversion to the new system, Perez

  • Counsel on potential expansion of business activity plans.
  • Search for and interview new personnel.
  • Hire new personnel.
  • Train personnel.

In addition, the entity requests that, during the three months subsequent to the conversion, Perez

  • Supervise the operation of the new system.
  • Monitor entity-prepared source documents and make changes in basic IT-generated data as Perez may deem necessary without the concurrence of the entity.

Perez responds that he may perform some of the services requested but not all of them.

Required:

a. Which of these services may Perez not perform? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)

check all that apply

  • Counsel on potential expansion plans.
  • Search for and interview new personnel.
  • Train personnel.
  • Hire new personnel.
  • Supervise the operation of the system.
  • Monitor client-prepared source documents and make changes in basic IT-generated data without the concurrence of the client.

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