Question: When a dispute arises between an audit client and its auditor regarding the proper accounting treatment for a transaction or other item, the audit client

When a dispute arises between an audit client and its auditor regarding the proper accounting treatment for a transaction or other item, the audit client will sometimes retain another accounting firm to issue a report, previously known as a SAS No. 50 report; on the proper accounting treatment for the given item [see AU Section 625 and AU-C Section 915]. Identify the potential ethical dilemmas that may result from allowing accounting firms to issue such reports to non-audit clients.

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To begin with a little background information on SAS No 50 that you may find helpful AU Section 625 incorporates SAS No 50 Reports on the Application ... View full answer

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