Question: Doolittle LLP, a CPA firm, has been doing financial statement auditing for Honesty Corp. for the last 10 years. While auditing last year's financial statements

Doolittle LLP, a CPA firm, has been doing financial statement auditing for Honesty Corp. for the last 10 years. While auditing last year's financial statements of Honesty, Doolittle finds out that Honesty has overstated assets by 12 percent and revenues by 19 percent to make up for the huge losses it incurred. When Doolittle informed the management of Honesty about this illegal act, Honesty's management threatened to cancel Doolittle's contract with Honesty and demanded back the corporate records and working papers from Doolittle. Should Doolittle give them back? Who owns them? Who has right of access to them? If Doolittle is forced by Honesty to destroy those papers, under which act can Doolittle be punished?Does the AICPA Code of Professional Conduct address this type of situation? If so, identify and provide a summary of that portion of the AICPA Code of Professional Conduct.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Law Questions!