Chat 2 Solutions (CH2)

Chat 2 Solutions (CH2) - Chapter 02 - Professional...

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Chapter 02 - Professional Standards Chat 2 Solutions Problem 2-36 SOLUTION: White Company (a) No, Rezzo would not be justified in complying with White's request. Although Rezzo is a CPA, he has not audited the financial statements of White Company in accordance with generally accepted auditing standards. Preparation of financial statements cannot be construed as synonymous with auditing the statements. Furthermore, because of Rezzo's deep involvement with White Company, it is questionable whether he could maintain an independence of mental attitude if he did audit the financial statements. (b) If Rezzo were justified in issuing a standard audit report on the financial statements of White Company, he should not do so until he has completed an audit of the financial statements. The auditor does not express an opinion on financial statements without first performing an audit. (c) No, it would not be reasonable for the public accounting firm employing Rezzo to assign him to the audit of the White Company financial statements. Having himself
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Chat 2 Solutions (CH2) - Chapter 02 - Professional...

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