Did the confidentiality agreement that Minkow required Ernst & Whinney to sign improperly limit the scope of the ZZZZ Best audit? Why or why not? Discuss general circumstances under which confidentiality concerns on the part of a client may properly affect audit planning decisions. At what point do client-imposed audit scope limitations affect the type of audit opinion issued?
Answer to relevant QuestionsWhat procedures, if any, do professional standards require auditors to perform when reviewing—prior to the completion of the audit—a client’s post-year-end earnings press release?Compare and contrast the internal control reporting responsibilities of the management and independent auditors of public companies.Section 404 of the Sarbanes–Oxley Act requires auditors of a public company to analyze and report on the effectiveness of the client’s internal controls over financial reporting. Describe the responsibilities that ...Describe the nature and purpose of a “peer review.” Would peer reviews of Friehling & Horowitz have likely resulted in the discovery of the Madoff fraud? Why or why not?Is it appropriate for an audit firm “to function as a de facto adjunct” to a client’s accounting department? Why or why not? Which party or parties were primarily responsible for Deloitte being dismissed as ...
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