Question: The managing partner of a CPA firm is approached by
The managing partner of a CPA firm is approached by the CEO of a major client in the firm’s headquarters office in New York City. The CEO can’t use two tickets to the Super Bowl between the Denver Broncos and the New York Giants. The CEO knows the partner is a huge New York Giants football fan and is looking forward to the Peyton Manning versus Eli Manning match-up. While both quarterbacks have won the Super Bowl in different years, the Manning brothers have never played against each other in the Super Bowl. In a gesture of gratitude for services rendered, the CEO offers the tickets to the partner. At first, the partner is excited about the prospects of going to the Super Bowl but also realizes there may be some ethical issues to be considered before deciding whether to accept the tickets. Assume the partner asks for your help. You are a CPA and a longtime friend of the partner. You hate football, so your advice will be completely objective. What are the ethical issues that you would raise with the partner to help in deciding whether to accept the Super Bowl tickets? Would your advice be different with respect to accepting the tickets if the firm provides only non auditing services to the client? What if it provides both non auditing and auditing services? Be sure to cite specific ethics rules in the AICPA Code of Professional Conduct that would guide your actions.
Answer to relevant QuestionsCan a CPA be independent without being objective? Why or why not? Can a CPA be objective without being independent? Why or why not? Does your answer matter assuming you only provide only non auditing services to the client? ...A large, national accounting firm decides it is time to outsource the preparation of income tax returns to an organization in India that has performed outsource services for other U.S. CPA firms. The firm will transmit ...1. Assume Jennie Lin is a CPA. Evaluate her actions with respect to the rules of conduct of the AICPA. 2. Jennie believes that her actions were proper because taking the money from the church and giving it to the homeless ...What is the purpose of audit “risk assessment”? What are its objectives, and why is it important in assessing the likelihood that fraud may occur?Do you think the concept of materiality is incompatible with ethical behavior? Why or why not?
Post your question