1. According to the Act of Sarbanes-Oxley tax services are not in the list of prohibited or
non-audit services. So it is allowed to provide tax services to the companys auditors. The
The audit of Mellow Markets does not comply with the performance principle of GAAS.
According to planning, the performance principle was violated due to the lack of
attention and time Fallon has spent to train the inexperienced staff as well as his failur
Something Went Sour at Parmalat
1. What steps does an auditor ordinarily take when confirming cash balances held
on deposits with financial institutions?
Standard bank confirmation requests should be signed by a client officer. Banks
Arthur being an auditing firm would have exercised its duties by giving reports on a true and fair
view of the firms financial position. It would have also ensured that proper books of accounts
are kept in line with underlying