Question
The following instances are situations that an auditor might have to face in real life. Indicate with explanation whether the situations below are violations of
The following instances are situations that an auditor might have to face in real life. Indicate with explanation whether the situations below are violations of either AICPA rules or SEC regulations. For those which are violations, what potential actions could be taken to "cure" them and make them allowable?
a. Providing bookkeeping services to a small private company. The company happens to be the client of your sisters Audit firm.
b. Acting as an internal auditor of a private company. Another CPA firm acts as their external auditors.
c. Recommending a tax mitigation scheme to your client.
d. Putting up a banner saying that your firm guarantees a savings of 30% in tax liabilities for any potential client referrals.
e. Implementing an Enterprise Resource Planning system (ERP) for your audit client.
f. Your audit junior flirts with the accounting manager of your client in s sexual manner.
g. Your audit junior found out that your client is losing money. He tells his Mom to sell her shares of the company.
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