ACCY 131 EC-1a Solution

ACCY 131 EC-1a Solution - EthicsCase#1(EC1)...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Ethics Case #1 (EC 1) Ethics Case Problem: You are the Partner in Charge of a large metropolitan office of a regional public accounting firm. Two members of your professional staff have come to you to discuss problems that may affect the firm’s independence. Neither of these situations has been specifically answered by the AICPA Professional Ethics Division. Therefore, you must reach your own conclusions as to what to advise your staff members, and what actions, if any, are to be taken by the firm. Req’d: For each of the following two cases, you are to: a. Set forth arguments indicating that the firm’s independence has not been impaired. b. Set forth arguments indicating that the firm’s independence has been impaired. c. Express your personal opinion. Identify those arguments from part (a) or part (b) that you found most persuasive. If you believe that the firm’s independence has been impaired, make suggestions about how the problem might be resolved. Case1: Don Moore, a partner in the firm, has recently moved into a condominium which he shares with his girlfriend, Joan Scott. Don owns the condominium and pays all the expenses relating to its maintenance. Otherwise, the two are self supporting. Joan is a stockbroker, and recently she has started acquiring shares in one of the audit clients of this office of the public accounting firm. The shares are held in her (Joan’s) name. At present, the shares are not material in relation to her net worth. Case 1 Solution
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

ACCY 131 EC-1a Solution - EthicsCase#1(EC1)...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online