Auditing Opdracht 1

Topics: Financial services, Deception, Financial audit Pages: 1 (611 words) Published: March 15, 2015
1. Jasmine is not violating the Code of Professional Conduct, as long as she keeping both of her jobs separated properly. She should not go and provide financial services to her audit clients, because that would be a violation of the Independence rule (rule 101). She should also be aware of rule 301. She is bringing her audit work to her financial services company, where other CPA are employed as well. She has to make sure that they don’t have access to the client’s information.   2. This depends on what information Elmyra is posting on her website, what is mentioned in the quotes and if the quotes are true.She cites several prominent clients she has worked with, of whom she provides links to their websites, and she included quotes from her happy clients. According to rule 502 of the rules of conduct, a member in public practice (Elmyra, CPA) shall not seek to obtain clients by advertising or other forms of solicitation that is false, misleading, or deceptive. Elmyra advertises her practice online, which is not prohibited under rule 502. However, if these quotes are misleading or deceptive, she will violate rule 502. 3. Rukan is approaching the company’s president about a possible misstatement in the financial statements. He is acting according to the Code of Professional Conduct. The president should either explain the matter in a way that Rukan agrees fully with the statements, or Rukan should stick to his opion and not approve the financial statements. According to rule 102 a CPA shall not knowingly subordinate his judgements to others. 4. According to rule 101 a member in public practice (Samir) shall be independent in the performance of professional services as required by standards promulgated by bodies designated by Council. For a member in public practice to be independent, he/she cannot have joint closely held investments with the client. Samir, who is hired to audit a company owned by Zubair Al-Sharif, owns a substantial limited partnership...
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