When assessing audit risk, should auditors consider the type and number of third parties that may ultimately rely on the client’s financial statements? Should auditors insist that audit engagement letters identify the third parties to whom the client intends to distribute the audited financial statements? Would this practice eliminate auditors’ legal liability to nonprivity parties not mentioned in engagement letters?
Answer to relevant QuestionsUnder present technical standards, would auditors be required to disclose a company policy similar to Nay’s mail rule that they discover during an audit? Explain. Assuming such disclosure had been required at the time this ...Do you believe that Anton Nikolov has dealt with his concerns regarding Elizabeth Wallace appropriately? Did he behave ethically in discussing that matter with Julius Shen? Defend your answer.Do you believe that either Olivia or Eli acted “unprofessionally” or “unethically”? Defend your answerSince ethical and moral values vary from culture to culture and nation to nation, does this mean that a global profession, such as the accounting profession, cannot have a uniform ethical code? Explain.Identify specific financial statement auditing concepts and procedures that could be applied in determining whether an Islamic bank has been Shari’a compliant during a given financial reporting period. Would these concepts ...
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