Some of the members of Phar-Mor's financial management team were former auditors for Coopers & Lybrand. (a)
Question:
(a) Why would a company want to hire a member of its external audit team?
(b) If the client has hired former auditors, would this affect the independence of the existing external auditors?
(c) How did the Sarbanes-Oxley Act of 2002 and related rulings by the PCAOB, SEC or AICPA affect a public company's ability to hire members of its external audit team?
(d) Is it appropriate for auditors to trust executives of a client?
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a A company may desire to hire a member of its audit teams for a number of reasons i The auditor is familiar with the company ii The auditor is typica...View the full answer
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Related Book For 
Auditing Cases An Interactive Learning Approach
ISBN: 978-0133852103
6th edition
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
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