A5 Twatt - Chapter 5 Tiffany Watt Assignment: A5 Oct. 7,...

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Unformatted text preview: Chapter 5 Tiffany Watt Assignment: A5 Oct. 7, 2011 AC 405 – E01 5-21. What happens to client companies that are not desired as clients by the CPA firms that are very concerned about client reputation? These might be companies with known management integrity issues or fee disputes with prior auditors. Will these companies still be able to get audits? From whom? What do you think this means regarding protecting the public interest and integrity of the capital markets? Client companies that are not desired as clients by the CPA firms that are very concerned about client reputation may try a number of other firms until they find one that is willing to take them on as a client. Regardless of their reputations, these companies will always be able to get audits because, unfortunately, some audit firms may not be as concerned about protecting the public as they are about being heavily compensated for their services. In other words, their main focus is on money, not protecting the public interest. In regards to protecting the public interest and integrity of the capital markets, if CPA the public interest....
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This note was uploaded on 02/02/2012 for the course BUSINESS 101 taught by Professor - during the Spring '11 term at Mississippi Valley State University.

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