The following instances are situations that an auditor might have to face in real life. Indicate...

 

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The following instances are situations that an auditor might have to face in real life. Indicate with an explanation if necessary whether the situations below are the violations of AICPA rules. a. Providing bookkeeping services to a small private company. The company happens to the client of your sister's audit firm. b. Acting as an internal auditor of a private company. Another CPA firm acts as their external auditors c. Recommending a tax mitigation scheme to your client. d. Putting up a banner saying that your firm guarantees a savings of 30% in tax liabilities for any potential clients. e. Implementing an Enterprise Resource Planning (ERP) system for your audit client. f. Your audit junior flirts with the accounting manager of your client in a sexual manner, g. Your audit junior found out that your client is losing money. He tells his mom to sell of the shares of the company. The following instances are situations that an auditor might have to face in real life. Indicate with an explanation if necessary whether the situations below are the violations of AICPA rules. a. Providing bookkeeping services to a small private company. The company happens to the client of your sister's audit firm. b. Acting as an internal auditor of a private company. Another CPA firm acts as their external auditors c. Recommending a tax mitigation scheme to your client. d. Putting up a banner saying that your firm guarantees a savings of 30% in tax liabilities for any potential clients. e. Implementing an Enterprise Resource Planning (ERP) system for your audit client. f. Your audit junior flirts with the accounting manager of your client in a sexual manner, g. Your audit junior found out that your client is losing money. He tells his mom to sell of the shares of the company.

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As per SarbanesOxley Act auditors are prohibited in performing certain nonaudit services to the publ... View the full answer