Question
Your firm audits Co. X. You are the lead audit partner and the audit is 70% complete. As the audit is nearing completion you visit
Your firm audits Co. X. You are the lead audit partner and the audit is 70% complete. As the audit is nearing completion you visit the audit crew and go to say hello to the controller. You are told that the controller has left early as he is getting married that weekend. You think nothing of it, but on Monday morning you learn that a member of the firm had married the contoller of Co. X. The firm
Group of answer choices
a. recognize that a conflict now exist and immediately cease all work and withdraw from the engagement
B. do nothing as the audit was commenced when there was no conflict and the marriage was not reasonably foreseeable.
C. may finish the audit and retain the client provided that the firm establishes adequate safeguards such as erecting preventive barriers that segregate client information from flowing to the tainted member.
D. must terminate the tainted member's employment as the firm has a contractual obligation to complete the audit and the member is an at-will employee (i.e. no employment contract)
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