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Unformatted text preview: authorization from the audit client before the review takes place. © W.R. Knechel Ethical Cases James Thurgood, CPA stayed longer than he should have at the annual Christmas party of Nevada firm, Thurgood and Thurgood, CPAs. One his way home he drove through a red light and was stopped by a policeman, who observed that he was intoxicated. In a jury trial, Thurgood was found guilty of driving under the influence of alcohol. Since this was not his first offense, he was sentence to 30 days in jail and his driver's license was revoked for 1 year. Bill Wendal, CPA, set up a casualty and fire insurance agency to complement his auditing the tax services. He does not use his own name on anything pertaining to the insurance agency and has a highly competent manager, Frank Jones, who runs it. Wendal frequently requests Jones to review the adequacy of a client's insurance with management if it seems underinsured. He feels that he provides a valuable service to clients by informing them when they are underinsured....
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- Fall '08
- Financial audit, James Thurgood, W.R. Knechel, Ethical Cases