Sally awarded a contract to Green Co. even though its bid was not the most competitive....
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"Sally awarded a contract to Green Co. even though its bid was not the most competitive. Sally's husband used to work for Green Co. five years ago but is no longer employed there." How might this be relevant to the audit of financial statements of a closely-held company? What would be the impact on the audit opinion if the auditor did NOT uncover the fraud? Do you think the particular item would be easily discovered by the auditor in the normal course of their audit? Why or why not? "Sally awarded a contract to Green Co. even though its bid was not the most competitive. Sally's husband used to work for Green Co. five years ago but is no longer employed there." How might this be relevant to the audit of financial statements of a closely-held company? What would be the impact on the audit opinion if the auditor did NOT uncover the fraud? Do you think the particular item would be easily discovered by the auditor in the normal course of their audit? Why or why not?
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The scenario described raises concerns about potential conflicts of interest and ethical considerations particularly when it comes to the audit of fin... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
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