Please review Case 13-35 (Gale Brewer, CPA) in your textbook. In this case, we are going to find weaknesses in the design of an audit program.

Q- What are the major deficiencies in the audit, and why did they take place? Do you see any ethical issues with the auditor's behavior?"

Q- Do you think auditors should evaluate the competence of the audit client's accounting personnel? Why, or why not?

CASES

13-35 (Objectives 13-4, 13-5) Gale Brewer, CPA, has been the partner in charge of the audit of Merkle Manufacturing Company, a nonpublic company, for 13 years. Merkle has had excellent growth and profits in the past decade, primarily as a result of the excellent leadership provided by Bill Merkle and other competent executives. Brewer has always enjoyed a close relationship with the company and prides himself on having made several constructive comments over the years that have aided in the success of the firm. Several times in the past few years, Brewer