Refer to the Auditing in Practice feature, "Why Might an Audit Firm Refuse to Continue Providing Services to a Client? The Case of Longtop Financial Technologies and Deloitte. Read the e-mail that Deloitte sent to Longtop management describing their reasons for resigning from the engagement. Briefly describe Deloitte's main complaints. Deloitte and other large audit firms would like very much to operate in the China market. What risks do you think might be unique to accepting and retaining clients in a foreign country that is not necessarily supportive of U.S. interests?
Answer to relevant QuestionsWhat is audit partner rotation? What is audit firm rotation? What is the fundamental rationale for rotation of either type? What is the primary problem associated with rotation of either type?Access the following publicly available disclosures made by IRIDEX Corporation on the SEC's Web site (www.sec.gov):● 8-K filed 8-29-2007● 10-K filed 3-30-2007● 10-K filed 4-10-2008● Def 14A (proxy) filed 4-28-2008● ...Access the most recently available annual report of Siemens (www.siemens.com/investor/en/financials/annual_reports.htm).Locate and read the MD&A section of the report. Comment on why the audit report does not provide ...List the components of a standard unqualified audit report for a U.S. public company.Identify the basic types of audit reports other than a standard unqualified audit report and explain the circumstances under which each type of report is appropriate.
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