Read the case study titledAnatomy of a Confrontation,from The Trueblood Case Studies Program of Deloitte. In it, an audit senior manager describes a situation in which professional skepticism led to the discovery of potential unethical behaviors.

Assignment

1. What is professional skepticism?
   • Reference the section of the AICPA Code of Professional Conduct that addresses professional skepticism.
   • Reference the section of the AU-C Section 200 that addresses professional skepticism.
   • Reference the section of your state's Code of Professional Conduct that addresses professional skepticism.
2. Who is responsible for preparing the financial statements?
3. What quality is in question if auditors prepare the financial statements?
   • Reference the section of the AICPA Code of Professional Conduct that addresses the issue.
   • Reference the section of your state's Code of Professional Conduct that addresses the issue.
4. It is common for auditors to make adjusting journal entries. What are the issues related to our making adjusting journal entries?
   • Reference the section of the AICPA Code of Professional Conduct that addresses the issue.
   • Reference the section of your state's Code of Professional Conduct that addresses the issue.
5. Look back at the case: Anatomy of a Confrontation. As you can see, it is the day before the audit report is due and we are still missing a reconciling item.Do a brief memo outlining your response as a member of the audit team. Incorporate the ethical virtues and mindset discussed earlier in the course as well as parts of the codes above

Answer rating: 100% (QA)

Memo To Audit Team From Your Name Date Date Subject Reconciliation of Missing Item As we approach the deadline for issuing the audit report it has com... View the full answer