An audit client, March Corporation, requested that John Day, CPA, conduct a feasibility study to advise management of the best way the corporation can use electronic data processing equipment and which computer, if any, best meets the corporation’s requirements. Day is technically competent in this area and accepts the engagement. Upon completion of Day’s study, the corporation accepts his suggestions and installs the computer and related equipment that he recommended.

Required:

a) Discuss the effect that acceptance of this consulting services engagement would have upon John Day’s independence in expressing an opinion on the financial statements of March Corporation.

Answer rating: 100% (QA)

The acceptance of this consulting services engagement would not have a material effect o... View the full answer