{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

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

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

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. Greenberg’s 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). Greenberg’s affinity for Floyd will at least give the appearance of a lack of independence....
View Full Document

  • Spring '11
  • Stault
  • Financial audit, U.S. Securities and Exchange Commission, Uniform Certified Public Accountant Examination, 1970s music groups

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern