Question: Mini- Case: Non-audit Services and Independence. Refer to the mini- case How Many Firms? shown on page C17 and respond to questions 1, 2, and

Mini- Case: Non-audit Services and Independence. Refer to the mini- case “How Many Firms?” shown on page C17 and respond to questions 1, 2, and 3.

1. What steps does an auditor ordinarily take when confirming cash balances held on deposits with financial institutions?

2. What additional steps should the auditors have taken when they received the smudged fax copy printed on Bank of America letterhead?

3. What red flags did the auditors miss?

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