Do you agree with the assertion of John Ellingsen that an audit engagement partner is not â€śresponsible for all decisions made in the course of an engagement?â€ť Defend your answer. What quality control implications does that assertion, if true, have for audit firms?
Answer to relevant QuestionsIdentify the advantages and disadvantages of mandatory audit firm rotation. What, if any, auditor rotation rules are in effect in the United States?What professional standards require accounting firms to develop quality controls for their audit practices? What key issues should such quality controls address? In commenting on Deloitteâ€™s quality controls, the PCAOB ...Do you believe Deloitte & Touche should have approved Liventâ€™s decision to record the $12.5 million â€śnaming rightsâ€ť payment as revenue during the third quarter of 1997? Defend your answer. What broad accounting ...Once an audit firm has informed client management of important internal control weaknesses, what further responsibility, if any, does the audit firm have regarding those items? For example, does the audit firm have a ...In your opinion, did the apparent mistakes made by the PwC auditors in auditing Take- Twoâ€™s receivables and reserve for sales returns involve â€śnegligenceâ€ť on their part? Would you characterize the mistakes or errors as ...
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