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Tim Doig, CPA, performed an audit on the Strumpff Company and issued an unqualified opinion. Tim performed the audit with due professional care and inaccordance
Tim Doig, CPA, performed an audit on the Strumpff Company and issued an unqualified opinion. Tim performed the audit with due professional care and inaccordance with generally accepted auditing standards. Two months after the report is issued, Tim discovers on the news that the CEO of Strumpff, Kevin Strumpff, has been stealing inventory items. The amount, however, is immaterial compared to the overall inventory of the corporation. Tim soon receives a call from Strumpff's CFO, Rick LaHood. Rick wants Tim to refund the audit fees. Rick thinks Tim did not properly perform the audit, as he did not discover this fraud. Further, he feels that now Strumpff's financial statements are not fairly stated because of Tim. How should Tim respond to this claim? points
Tim Doig, CPA, performed an audit on the Strumpff Company and issued an unqualified opinion. Tim performed the audit with due professional care and inaccordance with generally accepted auditing standards. Two months after the report is issued, Tim discovers on the news that the CEO of Strumpff, Kevin Strumpff, has been stealing inventory items. The amount, however, is immaterial compared to the overall inventory of the corporation. Tim soon receives a call from Strumpff's CFO, Rick LaHood. Rick wants Tim to refund the audit fees. Rick thinks Tim did not properly perform the audit, as he did not discover this fraud. Further, he feels that now Strumpff's financial statements are not fairly stated because of Tim. How should Tim respond to this claim? points
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