Required: For each scenario, discuss if there is a threat to the auditor's independence and provide...
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Required: For each scenario, discuss if there is a threat to the auditor's independence and provide an appropriate safeguard to minimize the threat to an acceptably low level. a. Mangit Monez, CPA was recently assigned to the audit of Save the Sloths (STS), a non-profit organization that raises money and acquires veterinary equipment for the rehabilitation of injured and ill sloths in Central America. Mangit was thrilled to be assigned to the audit of STS because she often gets to see her daugher Rani who is the receptionist at STS. b. Luke Jimenez, CPA is the senior auditor responsible for the audit of Apple Vale winery. Last year's audit fees was being paid monthly by Apple Vale, but no payments have been made in the last three months. c. Louise Cartwright, CPA owns a material amount of stock in a mutual fund investment company. That company, in turn, owns stock in Louise's largest audit client. When Louise read the mutual fund's latest financial statement, she learned that the mutual fund investment company's share of ownership in her client increased significantly. Required: For each scenario, discuss if there is a threat to the auditor's independence and provide an appropriate safeguard to minimize the threat to an acceptably low level. a. Mangit Monez, CPA was recently assigned to the audit of Save the Sloths (STS), a non-profit organization that raises money and acquires veterinary equipment for the rehabilitation of injured and ill sloths in Central America. Mangit was thrilled to be assigned to the audit of STS because she often gets to see her daugher Rani who is the receptionist at STS. b. Luke Jimenez, CPA is the senior auditor responsible for the audit of Apple Vale winery. Last year's audit fees was being paid monthly by Apple Vale, but no payments have been made in the last three months. c. Louise Cartwright, CPA owns a material amount of stock in a mutual fund investment company. That company, in turn, owns stock in Louise's largest audit client. When Louise read the mutual fund's latest financial statement, she learned that the mutual fund investment company's share of ownership in her client increased significantly.
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Answer rating: 100% (QA)
a Threat to Independence Familiarity threat Mangits close relationship with her daughter who works at the audited organization may impair her objectiv... View the full answer
Related Book For
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
Posted Date:
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