Will your testimony affect your continuing ability

Assignment Help Accounting Basics

Reference no: EM131884308

Question: In a lawsuit between Bottomfisher Bank and Cellular Dynamico, a question has arisen concerning whether Cellular Dynamico's bookkeeping staff routinely recorded a journal entry in the ordinary course of business at approximately the same time that the accounting event reflected in the journal entry occurred. The bank claims that the company manipulated its books and records several months after year-end to gain a tactical advantage in this litigation.

By coincidence, you happen to be the lead partner on the audit engagements for both Bottomfisher Bank and Cellular Dynamico. You have been subpoenaed into court to testify about whether you saw this journal entry on the client's book prior to year-end. Your testimony is going to be yes, which will help Cellular Dynamico's defense, but it will harm the bank's claim. Will your testimony affect your continuing ability to serve as the bank's auditor? Will it affect your independence to remain Cellular Dynamico's auditor?

Reference no: EM131884308

Questions Cloud

Describe the effects of gangs on juveniles : Write a paper comparing two juvenile diversion, intervention, or prevention programs operating in your city or state.

Discuss the major differences between marxism and capitalism : Discuss two of the major differences between Marxism and Capitalism. In your discussion, provide specific examples of how each are implemented or used today.

State how much each class of stock should receive : State how much each class of stock should receive under each of the following conditions. The preferred stock is noncumulative and nonparticipating

What is the new depreciation life : A company purchased a heating system on January 2, 1992, at a list price of $300,000 less a trade discount of for $75,000. The system had an estimated useful.

Will your testimony affect your continuing ability : By coincidence, you happen to be the lead partner on the audit engagements for both Bottomfisher Bank and Cellular Dynamico.

What is the unrealized intercompany inventory profit : December 31, 20X8, inventory contained $1,000 worth of intercompany merchandise. What is the unrealized and realiazed intercompany inventory profit

What is the investor capital gain yield : What is the municipal bond’s yield? What is the investor’s capital gain yield?

Record the amortization of the related bond discount : On the first day of the fiscal year, a company issues a $972,000, 10%, 5-year bond that pays semiannual interest of $48,600 ($972,000 x 10% x 1/2).

Does the montreal convention govern this incident : Giulia is traveling from Italy to China. The plane briefly lands in Thailand to refuel and pick up new passengers.

User Account

All Pages