Chapter 8 Discussion Questions
In this chapter we discuss problems encountered by the PCAOB in gaining access to inspect
work papers of audits by U.S. international accounting firms of Chinese companies. Explain why
these problems exist including cultu
It has been said that independence is the cornerstone of the accounting profession. Explain
what this means. How do auditors protect against impairments of independence?
Independence is considered the cornerstone of the a
Chapter 5 Discussion Questions
What is the purpose of audit risk assessment? What are its objectives, and why is it important in
assessing the likelihood that fraud may occur?
Risk assessment is the process of estimating the likelihood of adverse condi
Chapter 6 Discussion Questions
Distinguish between common-law liability and statutory liability for auditors. What is the basis
for the difference in liability?
Common law liability arises from legal opinions issued by judges in deciding cases. These o
Chapter 7 Discussion Questions
1. In Arthur Levitts speech that was referred to in the opening quote he also said: I
fear that we are witnessing an erosion in the quality of earnings, and therefore, the
quality of financial reporting. Managing may be givi
The story of ZZZZ Best is one of greed and audaciousness. It is the story of a 15-year
old boy from Reseda, California who was driven to be successful regardless of the costs. His
name is Barry Minkow.
Minkow had high hopes to make it
Chapter 3 Discussion Questions
1. In her book Seven Signs of Ethical Collapse, Jennings explains: When an
organization collapses ethically, it means that those in the organization have
drifted into rationalizations and legalisms, and all for the purpose o