Godwin, Key & Associates is a small but rapidly growing audit firm. Their success is largely due
Question:
The managing partner of Godwin, Key & Associates, Rebecca Haque, has recognized that the audit firm needs to make some changes to deal with the issues created by the changing circumstances of their major client and the audit firm's overall growth. She is particularly concerned that the audit firm could be legally liable if Carolina Company Ltd.'s financial situation worsens and it fails.
Required
(a) Provide guidance to Rebecca about the steps she can take to avoid the threat of litigation if Carolina Company Ltd. fails.
(b) What should Rebecca consider when making the client continuance decision for Carolina Company Ltd. for the next financial year?
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a Steps to take to avoid the threat of litigation in addition to the client continuation decision issues in part b below include Hiring competent staff Training staff and updating their knowledge regu...View the full answer
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