External Auditing Week 2 Assignment

External Auditing Week 2 Assignment - Ch.4P.48

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Ch. 4 P. 4-8 P. 4-18 c.  1 maintain public confidence in the profession. P. 4-19 c. 3 prohibited under the AICPA rules of conduct. P. 4-20 a. Yes b. No c. No. d. No e. Yes f. No. P. 4-21 a.  Rule 101 -Independence- No violation b.  Rule 201 - General Standards -Violation c.  Rule 102 - Integrity and Objectivity- Violation d. Rule 203 - Accounting Principals- Violation f. Rule 301- Confidential Client Information - Violation Rule 101 prohibits covered members from owning any stock  or direct investment in audit clients, because it is potentially  damaging to actual audit independence and it more likely to  affect the users perception of the auditors independence.  If  the partner of a the auditing firm had stock in Starbucks, then  the firm could not audit it.  If the auditors grand parents had  stock in Wal-Mart that was material than the firm could not  audit Wal-Mart.  A covered member includes partners and  professional staff.   a. 1 The auditor must be without bias with respect to the  client under audit. b. 3 involves the objective examination of and reporting on 
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This note was uploaded on 06/21/2011 for the course ACC550 550 taught by Professor Bekele during the Spring '11 term at Keller Graduate School of Management.

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External Auditing Week 2 Assignment - Ch.4P.48

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