Homework 1_.1934 act - Shari Ferguson Problem#1 1 You recently attended your five-year college reunion At the main reception you encountered an old

Homework 1_.1934 act - Shari Ferguson Problem#1 1 You...

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Shari Ferguson Problem #1 1. You recently attended your five-year college reunion. At the main reception, you encountered an old friend, Peter Tobin, who recently graduated from law school and is now practicing with a large law firm in town. When you told him that you are a CPA and employed by a regional CPA firm, he made the following statement: "You know, if the securities acts (the Securities Act of 1933 and the Securities Exchange Act of 1934) had not been passed by Congress in the 1930s, no one would be interested in having an audit performed." a. Draft a memo that highlights your thoughts about Tobin's statement that audits only takes place because they are required by law." Be sure to consider relevant evidence of a demand for auditing services outside of legal and regulatory requirements in your memo, and focus on the value that auditing provides. b. Discuss factors that may make an audit necessary and potentially valuable for a company. Be sure to consider the concept of information risk.
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Memo To: Peter Tobin From: Shari Ferguson Date: 09/26/2016 Re: "You know, if the securities acts (the Securities Act of 1933 and the Securities Exchange Act of 1934) had not been passed by Congress in the 1930s, no one would be interested in having an audit performed." I strongly disagree with your statement that audits only take place because they are required by law. A company's reliance on auditors are not solely to remain in compliance with the law. In fact, companies have paid billions of dollars over the years in audit fees according to reports filed with the SEC.
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  • Winter '12
  • N/A
  • Financial audit, U.S. Securities and Exchange Commission

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