Day in and day out, the big accounting firms and their smaller counterparts help companies, government agencies, and nonprofit organizations such as charities and museums organize, report, and interpret their financial data. When the U.S. Treasury Department set aside $700 billion to bolster the financial sector during recent economic turmoil, it hired two of the Big Four firms to audit the program and provide accounting assistance. Of course, few assignments are as glamorous as being involved in the Oscar, Grammy, or Emmy awards. Every year, after counting thousands of Emmy ballots, two Ernst & Young accountants are escorted to the awards ceremony with the results locked in silver briefcases handcuffed to their wrists. Until the presenters open the envelopes and announce the winners, only these accountants know the results—and they’re sworn to secrecy.

1. When an accounting firm has been hired to sign off on a public corporation’s annual report, should it limit its consulting work for that client to avoid being influenced by financial ties to the corporation? Explain your answer.
2. Why would the Recording Academy, the Academy of Motion Picture Arts and Sciences, and the Academy of Television Arts and Sciences hire major accounting firms instead of using their own employees to count ballots?