Reference no: EM13904725
You are the partner-in-charge of a large metropolitan office of a regional public accounting firm. Two members of your professional staff have come to you to discuss problems that may affect the firm's independence. Neither of these situations has been specifically answered by the AICPA Professional Ethics Division. Therefore, you must reach your own conclusions as to what to advise your staff members, and what actions, if any, are to be taken by the firm.
Case 1: Don Moore, a partner in the firm, has recently moved into a condominium that he shares with his girlfriend, Joan Scott. Moore owns the condominium and pays all the expenses relating to its maintenance. Otherwise, the two are self-supporting. Scott is a stockbroker, and recently she has started acquiring shares in one of the audit clients of this office of the public accounting firm. The shares are held in Scott's name. At present, the shares are not material in relation to her net worth.
Case 2: Mary Reed, a new staff auditor with the firm, has recently separated from her husband. Mary has filed for divorce, but the divorce cannot become final for at least five months. The property settlement is being bitterly contested. Mary's husband has always resented her professional career and has just used community property to acquire one share of common stock in each of the publicly owned companies audited by the office in which Mary works.
For each case, you are to:
Set forth arguments indicating that the firm's independence has not been impaired.
Set forth arguments indicating that the firm's independence has been impaired.
Express your personal opinion. Identify those arguments from part (a) or part (b) that you found most persuasive. If you believe that the firm's independence has been impaired, make suggestions about how the problem might be resolved.
Your paper should be 3-4 pages in length. Follow APA format, according to Guide to Writing and APA Requirements. Include a title page and reference page. Use two outside academic sources other than the textbook, course materials, or other information provided as part of the course materials
|
Expected to play under the affordable care act
: Long-term care services must be individualized, integrated, and coordinated. Elaborate on this statement, pointing out why these elements are essential in the delivery of long-term care. Describe in detail the role managed care is expected to play un..
|
|
What will be the expected return to the stockholders
: Assume that, if Don Jackson's proposal were adopted, next year's dividend would be zero but earnings growth would rise to 14 percent. What will be the expected return to the stockholders?
|
|
Price elasticity of demand at the market equilibrium
: Suppose that the market for paint is in equilibrium. The demand for paint is given by Qd=5000-8P. The supply of paint is given by Qs=2000+2P. What is the price elasticity of demand at the market equilibrium?
|
|
How much time will thoreau spend in leisure
: How much time will Thoreau spend in leisure - How many units of consumption good will he produce - Using the production function from part a), what is the marginal product of labor at the amount of labor in part a)?
|
|
Discuss problems that may affect the firm''s independence
: discuss problems that may affect the firm's independence
|
|
High-involvement strategies for improving human resource
: In your opinion what are “high-involvement” strategies for improving human resource management in organizations? Why? Provide specific examples.
|
|
Write a balanced equation using the correct formulas
: Write a balanced equation using the correct formulas and include conditions ( s, l, g, or aq) for each of the following reactions- Solid calcium carbonate decomposes to produce solid calcium oxide and carbon dioxide gas:
|
|
Find probability of no units in the system
: In a waiting line situation, arrivals occur at a rate of 2 per minute, and the service times average 18 seconds. Assume the Poisson and exponential distributions. Find probability of no units in the system. Find average number of units in the system...
|
|
Compute the macaulay duration of bond for integer values
: Berkshire Hathaway is contemplating the issue of a very unusual bond. Known as a “Bizarro Bond,” the security will provide an annual coupon payment of $50. The yield to maturity on the bond is 4 percent and the maturity value of the bond is the stand..
|