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5 - The problem is that Duffy gave Jim a gift for the sale...

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5 I believe there could be a conflict of interest. The auditor should be independent. Also a problem with integrity and objectivity. I believe the CPA firm is too involved with this company to do an objective audit. I would suggest if the CPA company is so involve with this company to hire another CPA firm to do the audit. If the CPA firm decides to perform all these services for the company should not do the audit. 2 In our opinion, the financial statements referred to above present , in all material respects, the financial position of the Company for the present year, and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in USA. We suggested some changes that would decrease property value and the earning per share for this year. 3 101 Direct versus indirect financial interest. This violates the indirect financial interest.
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Unformatted text preview: The problem is that Duffy gave Jim a gift for the sale she made with Jim best friend the owner of the company. It looks like Jim got paid for the information he provided to Duffy. 4 Rule 501 – Act Discreditable – is not a violation. Even thought is the fourth time the sentence he got was less that a year. 6 Santion and suspend CPA firms temporary or permanently from doing audits for SEC companies. This based on lack of qualifications or not property professional conduct. 8 Planning the Audit. Help the auditor understanding specific audit risks. This includes accounting balance comparison computation of ratios, and regression analysis. Substantive test. This is not required, but auditors uses it to achieve a certain level of assurance. Final review. To help the auditor reach a conclusion in the account balances and financial statements....
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5 - The problem is that Duffy gave Jim a gift for the sale...

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