Linda is the managing partner of Osuji and Associates, a small audit firm. Linda's role includes managing

Question:

Linda is the managing partner of Osuji and Associates, a small audit firm. Linda's role includes managing the business affairs of the firm, and she is very worried about the amount of fees outstanding from audit clients. One client, Dreamers Ltd., has not paid its audit fees for two years despite numerous discussions between Linda, the audit partner, Bill, and the management of Dreamers Ltd. Dreamers Ltd.'s management promised the fees would be paid before the audit report for this year was issued. Linda called Bill this morning to ensure that the audit report was not issued because Dreamers Ltd. had paid only 10 percent of the outstanding account. She discovers that Bill is about to sign the audit report.
Required
Explain
the ethical problem in this case. Why is it a problem? What can be done about it?
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...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Auditing A Practical Approach

ISBN: 978-1742165943

1st Canadian Edition

Authors: Robyn Moroney

Question Posted: