For the following three scenarios, perform the following analysis: a. Indicate whether or not the facts...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
For the following three scenarios, perform the following analysis: a. Indicate whether or not the facts present a threat to independence b. If it is an independence threat, indicate the type of independence threat. c. Provide an explanation for your conclusion as to why or why not the facts in the scenario would impair the CPA's professional judgment or objectivity. d. If there is an independence threat what safeguard could they put in place to address the threat of independence. Scenario 1 Microservices Ltd. has been audited by the public accounting firm of Bruce Penn LLP. It was decided by Bruce Partner, partner, that the prior year's time budget was a reasonable estimate to complete this year's audit. Although more work was anticipated to complete this year's audit, Bruce Partner was confident that the audit team's efficiency would be able to compensate for the extra time needed to do the audit. The partner had also promised Microservices Inc.that the firm would not increase the audit fee for this year. Independence threat (Yes or No). If yes identify the type of threat. Explanation why or why not the facts in the scenario would impair the CPA's professional judgment or objectivity Safeguard to address the independence threat if there exist one For the following three scenarios, perform the following analysis: a. Indicate whether or not the facts present a threat to independence b. If it is an independence threat, indicate the type of independence threat. c. Provide an explanation for your conclusion as to why or why not the facts in the scenario would impair the CPA's professional judgment or objectivity. d. If there is an independence threat what safeguard could they put in place to address the threat of independence. Scenario 1 Microservices Ltd. has been audited by the public accounting firm of Bruce Penn LLP. It was decided by Bruce Partner, partner, that the prior year's time budget was a reasonable estimate to complete this year's audit. Although more work was anticipated to complete this year's audit, Bruce Partner was confident that the audit team's efficiency would be able to compensate for the extra time needed to do the audit. The partner had also promised Microservices Inc.that the firm would not increase the audit fee for this year. Independence threat (Yes or No). If yes identify the type of threat. Explanation why or why not the facts in the scenario would impair the CPA's professional judgment or objectivity Safeguard to address the independence threat if there exist one
Expert Answer:
Answer rating: 100% (QA)
Answer The table below shows Independence Treat explanation and Safeguar... View the full answer
Related Book For
Auditing The Art And Science Of Assurance Engagements
ISBN: 9780136692089
15th Canadian Edition
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan, Joanne C. Jones
Posted Date:
Students also viewed these accounting questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Determine the force in members HI, FI, and EF of the truss, and state if the members are in tension orcompression. 3 m D. -2 m--2 m2 m--2 m--2 m--2 m- 4 kN 5 KN 6 kN 8 kN
-
To spark interest in choosing accounting as a major, the Accounting Students Association at South Willow University is sponsoring an accounting contest. Students across campus are invited to create...
-
Using these headings, subheadings, and topic sentences, how would you complete the findings section of the report? Where would you place the supporting details from his draft? FINDINGS ABOUT LAND...
-
Construct a bar graph for each of the following (assume the independent variable is group and the dependent variable is time): a. Group \(\mathrm{A}(N=5, M=4.00, s=1.58)\); Group B \((N=5, M=6.00,...
-
In Problem Sl-5 assume that Nicole, with the help of a financial newsletter and some library research, has been able to assign probabilities to each of the possible interest rates during the next...
-
Production data: Kilograms in process, May 1 (materials 100% complete; conversion 80% complete) Kilograms started into production during May Kilograms completed and transferred to Coating Kilograms...
-
Download the nasdaq-by-year-historical-annual-returns dataset in Excel from Connect or Additional Student Resources.8 Note the annual stock market returns to investment in the NASDAQ stock market...
-
Be sure to answer all parts of each question. Do not delete the instructions or questions from the worksheet. Remember that this worksheet should be completed independently and that your worksheet...
-
Description: Your program will allow the user to make an order at Mejia Coffee, which will include the following functionality: 1. Display Menu 2. Add Item to Order 3. View Cart 4. Checkout 5. Exit
-
The folks at Vlasic Pickles, a popular brand of all kinds of pick- les, decided there was a market for large pickle slices. Pickles, of course, are made from brining cucumbers. The problem was, in...
-
Kellogg Company is considering launching a new flavour of its Eggo frozen waffle called the Eggo 11 in order to monetize some of the free publicity around their product from the first seasons of the...
-
Lab 2-Simple Web Page Generation Background A natural arch is a rock formation with an opening underneath it. There are a variety of natural arches that can be visited in the state of Ohio. The Ohio...
-
Stretching beyond what is familiar can help you develop both growth mindset and grit. Here, you are asked to connect two important core curriculum goals, communication and quantitative reasoning. We...
-
Suppose that the Senate has the following breakdown in representation: 49 Democrats, 49 Republicans, and 2 Independents. Further, suppose that all Democrats and Republicans vote along party lines....
-
In the current year, the City of Omaha donates land worth $500,000 to Ace Corporation to induce it to locate in Omaha and create an estimated 2,000 jobs for its citizens. a. How much income, if any,...
-
Lesley Stopps, a public accountant, is the auditor for Great Western Lumber Company Ltd., a wholesale wood milling company. Lesley calculated the gross margin for three product lines and compared it...
-
You are the in-charge accountant on the audit of Dezine Inc. (DI). It is March 25, 2020, and your firm is partway through the audit for the year ended January 31, 2020. You are currently assigned to...
-
Assume that the clients internal controls over the recording and classifying of fixed-asset additions are considered deficient because the individual responsible for recording new acquisitions has...
-
In the second quarter of 2021, personal consumption expenditures, exports, and imports increased. Investment and government expenditure decreased. Real GDP increased by 6.5 percent following a 6.3...
-
When real GDP increased in the second quarter of 2021, consumption expenditure, exports, and imports increased. Fixed investment decreased, which included a decrease in business inventory investment....
-
Are U.S. exports part of U.S. induced expenditure or autonomous expenditure? Are U.S. imports part of U.S. induced expenditure or autonomous expenditure? U.S. imports are recovering thanks to the $2...
Study smarter with the SolutionInn App