WEEK 2 HOMEWORK, Bburt - Week 2 Homework Auditing 1 1M...

Week 2 Homework
Auditing 1 – 1M
Beverly Burt
June 4, 2017
Everest University
Instructor: Professor Battaglia
Instructions:
Using a word processing program, write a two-to-three-page response to the following:
 4-49, Auditing in Practice Feature
 4-53, Auditing in Practice Feature
 4-55, Framework for Ethical Decision-Making Scenario
 5-51, Compliance with the Ten Standards
 5-67, Segregation of Duties
pg. 1

Week 2 Homework
4-49, Auditing in Practice Feature
Refer to the Auditing in Practice feature “What Was He Thinking? An Example of Poor
Professional Judgment and Low Audit Quality.”
a. Briefly explain the common themes indicating poor professional judgment evident from
the facts about the Prospero Minerals audit, the Cal Bay audit, and the Lit Funding audit.
b. What do you think Scharfman’s motivation was in explaining his conduct?

Week 2 Homework
c. Why were Scharfman’s actions so potentially harmful to external users of the audited
financial statements?