Can a CPA be independent without being objective? Why or why not? Can a CPA be objective without being independent? Why or why not? Does your answer matter assuming you only provide only non auditing services to the client? What if you provide both audit and non auditing services?
Answer to relevant QuestionsWith respect to the Armadillo Foods case in this chapter, let’s assume that the controller is instructed by the CFO that to “make the numbers” the company must increase EPS by $.02 per share. This sounds innocent ...In August 2008, Ernst & Young LLP agreed to pay more than $2.9 million to the SEC to settle charges that it violated ethics rules by coproducing a series of audio CDs with a man who was also a director at three of EY’s ...1. Evaluate Joe’s actions and motives using ethical reasoning and with reference to the AICPA Code of Professional Conduct.2. Evaluate Joe’s actions from a cognitive development perspective.3. What would you do if you ...Distinguish between an auditor’s responsibilities to detect and report errors, illegal acts, and fraud. What role does materiality have in determining the proper reporting and disclosure of such events?How do materiality judgments affect risk assessment in an audit of financial statements?
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