Jackson Brown, CPA, has two clients, Tarpan Financial, Inc. and Oscar Industries. During his most recent audit
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Now, Tarpan is considering buying out Oscar Industries, using the information generated from that audit report and accompanying financial statements. While it is not public knowledge, Jackson knows that some financial dealings at Oscar have deteriorated since his audit. In driving home one day after the news of the possible buy-out, he notices that the scrap lot has filled up significantly since his last walk-through inspection.
At that point, Jackson thinks that the deal may be great news for Oscar but will involve many risks for Tarpan and wonders if he should provide Tarpan with information about the potential danger.
Required:
Identify the ethical and Code of Professional Conduct issues in the scenario.
Audit Report
The audit report is issued by a certified public accountant who is appointed by the shareholders to provide assurance upon the truth and fairness of the financial statements prepared by the managers of the company. Audit report contains the...
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Related Book For
Auditing and Assurance Services Understanding the Integrated Audit
ISBN: 978-0471726340
1st edition
Authors: Karen L. Hooks
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