Week Three - appearance of Floyd being independent. At the...

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AICPA allows a bookkeeper to audit the company with certain restrictions. 1. The client must accept full responsibility for the financial statements. 2. The CPA must not assume the role of employee or management conducting the operations of an enterprise. 3. The CPA, in making an audit of financial statements prepared from books and records that the CPA has maintained completely, or in part, must conform to GAAS. However, SOX and the SEC specifically prohibits a CPA from performing bookkeeping services for an audit client. It is a violation of Rule 101 – Independence. Attending BOD meetings and going with Greenberg when she is seeking loans does not give the
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Unformatted text preview: appearance of Floyd being independent. At the very least, it would give users the impression that Floyd is not independent or objective, a violation of Rule 102 Integrity and Objectivity. Greenbergs introduction of Floyd, joking or not, is inappropriate. It projects the possibility of a conflict of interest, is false and misleading and could possibly lead to unreasonable expectations, which could possibly be a violation of Rule 502 Advertising and Other Forms of Solicitation (but this may be a stretch). Greenbergs affinity for Floyd will at least give the appearance of a lack of independence....
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