You have met with a potential client, who informs you that all the employees and officers of his company are bonded. For this reason, he is requesting that under these conditions that you not look at his company's system of internal control so his company may reduce the cost of an audit.

Prepare a letter to the potential client explaining the following: Why you can or cannot honor his request. The reasoning for your decision, the potential ramifications of your decision, Based on your choice of action, what the perceived corporate governance of the company would be to the public.

Answer rating: 100% (QA)

TESTS OF INTERNAL CONTROLS Dear Sir Your request regarding bypassing the tests of internal controls cannot be entertained as it is a mandatory requirement under the SarbanesOxley Act of 2002SOX 302404 ... View the full answer