Question

an audit manager) has been assigned to the audit of Tandem Electric, Inc. Dorothy is concerned that Joanne, a friend from her college days, is on the internal audit staff of Tandem Electric. Dorothy believes she could provide services to this client in an objective manner. Which statement best describes how Dorothy should apply the AICPA conceptual framework approach in this situation?

Answer 1

I thought it would be B. Because if she is doing audit and knows someone in the company that is helping with the audit, she is NOT legally able to do the audit! That is what I learned in accounting anyway. I am not sure though just an input.I would pick B.

Answer 2

She should not participate in the audit of Tandem Electric before obtaining a written waivrom her firm’s general counsel.

Further Explanation:  

A review supervisor) has been doled out to the review of Tandem Electric, Inc Dorothy is worried that Joanne, a companion from her school days, is on the inner review staff of Tandem Electric. Dorothy accepts she could give administrations to this customer in a goal way.  

AICPA calculated system:  

A noteworthy change to the substance in the updated AICPA Code of Conduct is the joining of two calculated structures, one for individuals in open practice  

Explanations best portrays the AICPA morals guidelines identifying with a part's disappointment:  

The accompanying articulations best portrays the AICPA morals standards identifying with a part's inability to record his or her own assessment form in an opportune way  

1. The part is unequivocally urged to document his or her own expense forms in a convenient way.  

2. The inability to record an individual assessment form in an auspicious way should be uncovered to all customer sand potential customers.  

3. The inability to document an individual government form in an opportune way is generally viewed as a demonstration discreditable to the calling.  

Subject: business

Level: college

Keywords: AICPA calculated system, explanations best portrays the AICPA morals guidelines identifying with a part's disappointment.

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