Attached Files: $$Case$\_$ AA Capital Partners.pdf Case$\_$ AA Capital Partners.pdf $-$ Alternative Formats $(112\mathrm{.}882$ KB$)$ After reading the case, please answer the following questions: Identify $(1)$ contributing factors to the oversights by Ernst & Young auditors during the $2004$ AA Capital engagement, and $(2)$ propose measures for audit firms to minimize such oversights on audit engagements. $(1)$ Evaluate the appropriateness of Ernst & Young's decision not to rely on AA Capital$$s internal controls during the $2004$ audits, and $(2)$ discuss circumstances under which auditors can opt not to rely on a client$$s internal controls. $(1)$ Discuss the audit procedures required by professional auditing standards for related$-$party transactions, and $(2)$ assess whether these procedures could have led Ernst & Young to uncover the true nature of the cash transfers to John Orecchio. What objectives do auditors hope to accomplish in performing $$subsequent period$$ audit tests? Provide your perspective on John Ellingsen's claim that an audit engagement partner is not $$responsible for all decisions made in the course of an engagement.$$ Defend your answer. What quality control implications does that assertion, if true, have for audit firms?