Susan, CPA, compiles the financial statements of Fashion Ltd., a retail store selling clothes and fashion accessories. She also performs various accounting services for the firm. Susan has a small number of shareholdings in the firm, the value of which is immaterial to her personal wealth. Susan is a personal friend of the CFO of this company?

This year, the CEO asks Susan to help develop and install a computerized perpetual inventory control system. Susan does so, and also issues a normal notice to reader on the compiled financial statements for this fiscal year, while clearly marking all pages of the financial statements as "unaudited." Please discuss whether Susan has violated Code of Professional Conduct, Generally Accepted Auditing Standards, or other standards?

Answer rating: 100% (QA)

No Susan has not violated any professional standards Although she has a personal relationship with the CFO of the company this does not invalidate the ... View the full answer