The chairman of the board of Hughes Corporation proposed that the board hire as controller a CPA who had been the manager of the team that conducted Hughes Corporation’s audit engagement. The chairman thought that hiring this person would make the annual audit unnecessary and would consequently result in saving the professional fee paid to the auditors. The chairman proposed to give this new controller a full staff to conduct such investigations of accounting and operating data as necessary. Evaluate this proposal.
Answer to relevant QuestionsComplete the following chart indicating the corresponding Auditing Standards Board assertions and whether the assertion relates to transactions, balances, ordisclosures.You are engaged to examine the financial statements of Spillane Company for the year ended December 31. Assume that on November 1, Spillane borrowed $ 500,000 from Second National Bank to finance plant expansion. The long ...Why do you think experience is required to become certified? Define external, external-internal, and internal documentary evidence.Which of the following is not related to ethical requirements of auditors? a. Due care. b. Independence in appearance. c. Independence in fact. d. Professional judgment.
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