Best Co. is required to file their audited financial statements with the Government Accountability Office and Cole
Question:
Best Co. is required to file their audited financial statements with the Government Accountability Office and Cole & Dierks, CPAs have been hired to perform the engagement. Under the General Accountability Office rules, which of the following services related to preparing accounting records, if performed by Cole & Dierks, will always impair independence?
C) Recording transactions for which management has determined or approved the appropriate account classification, or posting coded transactions to an audited entity's general ledger
. Preparing financial statements based on information in the trial balance.
C) Posting entries that have been approved by an audited entity's management to the entity's trial balance
. C) All of these services will always impair independence.
Auditing Cases An Interactive Learning Approach
ISBN: 978-0132423502
4th Edition
Authors: Steven M Glover, Douglas F Prawitt