Principles Of Auditing & Other Assurance Services
21st Edition
ISBN: 9781259916984
Author: WHITTINGTON, Ray, Pany, Kurt
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 3, Problem 33QRA
Ron Barber, CPA, is auditing the financial statements of DGF, Inc., a publicly held company. During the course of the audit, Barber discovered that DGF has been making illegal bribes to foreign government officials to obtain business, and he reported the matter to senior management and the board of directors of DGF.
Required:
- a. If management and the board of directors take appropriate remedial action, should Barber be required to report the matter outside the company?
- b. Describe Barber’s appropriate response if management and the board of directors fail to take appropriate remedial action.
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Which of the following statements is true of the
Sarbanes−Oxley
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A.
All private and foreign companies must issue an internal control report evaluated by an outside auditor.
B.
Accounting firms are allowed to provide both auditing services and a full range of consulting services to their public company clients.
C.
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D.
The Public Company Accounting Oversight Board oversees the work of auditors of public companies.
The audit partner has just advised you that he has been approached to accept the appointment of auditor to Bungie Limited. Bungie Limited is a manufacturer of gaming machines and has been named in a recent anti-corruption enquiry as having offered incentives to state government members to support a proposed bill that would allow an increased number of gaming machines in licensed premises. No charges have yet been laid against Bungie Limited or any of its employees. The audit partner explains to you that Bungie Limited’s auditors were re-appointed for the current financial year at the Annual General Meeting held two months ago. However, Bungie Limited’s managing director is unhappy with the existing auditing firm as the audit partner assigned to Bungie Limited has been changed.
Required:
The audit partner is unsure whether he should accept the appointment and has asked you to outline any ethical, legal, and other factors to consider in his decision about whether to accept the…
The audit partner has just advised you that he has been approached to accept the appointment of auditor to Bungie Limited. Bungie Limited is a manufacturer of gaming machines and has been named in a recent anti-corruption enquiry as having offered incentives to state government members to support a proposed bill thatwould allow an increased number of gaming machines in licensed premises. No charges have yet been laid against Bungie Limited or any of its employees. The audit partner explains to you that Bungie Limited’s auditors were re-appointed for the current financial year at the Annual General Meeting held two months ago. However, Bungie Limited’s managing director is unhappy with the existing auditing firm as the audit partner assigned to Bungie Limited has been changed.
Required:
The audit partner is unsure whether he should accept the appointment and has asked you to outline any ethical, legal, and other factors to consider in his decision about whether to accept the…
Chapter 3 Solutions
Principles Of Auditing & Other Assurance Services
Ch. 3 - What is meant by the term ethical dilemma?...Ch. 3 - What are the two major types of constraints on...Ch. 3 - Prob. 3RQCh. 3 - Prob. 4RQCh. 3 - Prob. 5RQCh. 3 - Prob. 6RQCh. 3 - Prob. 7RQCh. 3 - Bill Scott works as a manager in the Phoenix...Ch. 3 - Prob. 9RQCh. 3 - Prob. 10RQ
Ch. 3 - Prob. 11RQCh. 3 - Prob. 12RQCh. 3 - Prob. 13RQCh. 3 - Prob. 14RQCh. 3 - Prob. 15RQCh. 3 - Prob. 16RQCh. 3 - Prob. 17RQCh. 3 - Prob. 18RQCh. 3 - Prob. 19RQCh. 3 - Prob. 20RQCh. 3 - Prob. 21RQCh. 3 - Prob. 22RQCh. 3 - Prob. 23RQCh. 3 - Prob. 24RQCh. 3 - Prob. 25RQCh. 3 - Prob. 26RQCh. 3 - Prob. 27QRACh. 3 - Prob. 28QRACh. 3 - Prob. 29QRACh. 3 - Prob. 30QRACh. 3 - Prob. 31QRACh. 3 - Prob. 32QRACh. 3 - Ron Barber, CPA, is auditing the financial...Ch. 3 - Prob. 34AOQCh. 3 - Prob. 34BOQCh. 3 - Prob. 34COQCh. 3 - Prob. 34DOQCh. 3 - Prob. 34EOQCh. 3 - Prob. 34FOQCh. 3 - Prob. 34GOQCh. 3 - Prob. 34HOQCh. 3 - Prob. 34IOQCh. 3 - Prob. 34JOQCh. 3 - Prob. 34KOQCh. 3 - Prob. 34LOQCh. 3 - Prob. 35OQCh. 3 - Prob. 36OQCh. 3 - Prob. 37OQCh. 3 - Prob. 38OQCh. 3 - Prob. 39OQCh. 3 - Prob. 40OQCh. 3 - Prob. 41OQCh. 3 - Prob. 42OQCh. 3 - Gary Watson, a graduating business student at a...Ch. 3 - Prob. 44PCh. 3 - Prob. 45PCh. 3 - Prob. 46PCh. 3 - Prob. 47PCh. 3 - Prob. 48PCh. 3 - Prob. 49ITCCh. 3 - Prob. 50ITCCh. 3 - Prob. 51RDC
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