Different questionThis is a practice$-$oriented case that will introduce you to attestation engagements beyond audits of financial statements and internal controls. Specifically, you will become familiar with attestation engagements $($examination$,$ review, and agreed$-$upon procedures$)$ and the corresponding standards over such engagements $($AICPA$$s Statements on Standards for Attest Engagements or $$SSAE$).$ You will then apply these standards within the context of the Academy Awards, PwC$$s role in the Academy Awards, and the $2017$ Academy Awards error $($the error$).$

Tabulation teams are sworn not to discuss the results of the counting, even among themselves. Subsequently, the two in$-$charge partners consolidate the results derived from each

tabulation team to determine the winners ensuring that the two partners are the only individuals in the world who know the identities of the winners and runners$-$up before the ceremony.

Once the tabulation is finalized, each partner is required to commit the results to memory. The

partners then quiz each other to ensure they have accurately memorized the winners in each category. The intent of this control is likely to ensure that, as a pair, the partners can react quickly in the event that an error is made $($e$.$g$.,$excitable or elderly presenters have been known in the heat of the moment to read out the wrong name$).$ Once in agreement, the partners select the winners from the pre$-$printed cards of nominees, personally stuff their set of presenter envelopes $($i$.$e$.,$ one complete set of winners per partner$),$ and shred the non$-$winning cards. Thus, each partner is responsible for their own complete set of winning envelopes. Each set of envelopes is placed into locked briefcases which are secured in a vault until Oscar Sunday

A number of controls are implemented on the night of the Academy Awards to ensure the continued secrecy and accuracy of the winners until the on$-$stage announcements. First, only the two in$-$charge partners have codes to access the vault containing the briefcases. Second, once the briefcases are retrieved, each partner travels a separate route to the ceremony in a chauffeured vehicle with police

escort, each maintaining security over one of the briefcases. Upon arrival, partners are first escorted onto the red carpet and are then ushered backstage; one partner is placed on stage left and one on stage right to accommodate presenters who may enter from either side of the stage. Once the ceremony has commenced neither partner is permitted to leave his$/$her post for any reason $($e$.$g$.,$ take a call, use the bathroom$).$ With both partners securely in place, envelopes are handed to the presenters just seconds before they walk onto the stage

New

A third balloting partner who also will have memorized the winners list will sit in the control room

with the producers of the show.

$2.$ A new formalized procedure is in place for the envelope $$hand off.$$ Specifically, celebrity presenters and one stage manager will confirm that the partners have provided the correct envelope to the presenters prior to going onstage $($i$.$e$.,$ the name of the award category is printed on the outside of the envelope$).$

$3.$ All three partners will attend rehearsals and practice what to do if there is an error.

$4.$ Partners are banned from using cellphones or social media during the ceremony.

The question

Discuss two concerns that a PwC audit partner, audit client, or an audit client investor $($i$.$e$.,$ shareholder$)$ may have had in response to the $2017$ error.