Cpa Firm
Essay by CMCNEAL1 • July 5, 2015 • Case Study • 343 Words (2 Pages) • 807 Views
- Rule 102 Integrity and Objectivity is “not knowingly misrepresent facts or subordinate his or her judgement. This applies because Jack Bean is asking Barbara to go against her judgement that led to her auditing the smaller items and not to include or reveal her findings to anyone else.
Rule 201 General Standards is the “member shall comply w/standards sufficient relevant data. The auditing program required Barbara to enter the small number of samples therefore the small number of samples were relevant to the audit.
According the Generally Accepted Auditing Standards of Fieldwork, an “auditor must obtain sufficient appropriate audit evidence to afford a reasonable bass for the opinion.” Barbara was not wrong for using the small number of samples because part of an auditor’s responsibility is to gain enough evidence adequate enough for her to form an opinion.
- The people who are affected by the dilemma are Barbara, the CPA firm and its employees, the company and its employees, and the financial statement users. The financial statement users are affected because they are depending on the financial statements to help make a decision on whether or not they want to conduct business with the company. Barbara, the CPA firm and its’ employees are affected because Barbara’s decision could cause them to be liable and held responsible for potential losses and causation.
- a. If Barbara throws the evidence away she is opening the door for the CPA firm and herself to be held liable for any losses and causations that the third party users face.
b. If Barbara tells someone about the misstatements she could cause the CPA firm she works for to lose a client as well as other potential clients that may want the firm to do something similar as Delancey Fabrics. Barbara may also be looked at the different in the CPA world as well as her company and gain a bad reputation.
4. Barbara should tell someone the misstatements so she or the CPA firm isn’t held liable for anything so she can keep her job, integrity, and her license.
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