Do you agree with the following statements. Why or why not?

Scenarios

1: The firm does not have the right to withhold information from the courts at the federal level. If the court is in a state in which statutes exists that treat CPA and client communication as privileged, the communication had to be deemed confidential at the time it occurred. Further, a CPA has the right to refuse testimony in those states but cannot do so in a federal court.

Bookings can defend herself by invoking the defense of contributory negligence. What that means is that the auditor claims the damages occurred because of the actions of the client and should not be held liable. In this case, the client provided the price estimation for the securities that led to the misstatement of the financial statements.

Greene should utilize the defense of nonnegligent performance since the auditor followed all appropriate procedures and documentation. This states that although there may have been misstatements, an auditor is not responsible if they have followed the correct procedures. The main concept is that an audit is not perfect and not all misstatements can be caught.

2. Corporate social media discrimination, I believe this is a very interesting, questionable, and growing topic that will continue as the growth of social media continues to grow. I personally once you share something on the internet and you don't take proper measures to protect it, then it becomes the property of all. I understand that some things are very personnel, but once someone shares this information on a platform that connects millions of people then it becomes an extension of yourself. In todays society I believe everyone is responsible for their virtual footprint and should conduct proper etiquette, but not everyone shares this view and I understand that.

With that being said, we should all expect future employers have the ability to see what their prospects have shared. Do they have the right? This is the real question. I personally believe that a company should not, because they should understand that everyone has their personal lives and that may not always be perceived as being inline with the companies values. But, once again this may depend on the company. If the company is someone like Disney and they expect their employees to fall under the "Disney look", then the prospect should expect their employer to pay attention to their social media.

Answer rating: 100% (QA)

1 I totally agree A firm should not fail to present audit documents or any other information to the court of law as and when required This is simply because failure to do so is taken as a contempt of ... View the full answer