MGAD10 Assignment
HW & KH
Winter 2014
MGAD10 Case Assignment 1
Case Question
You, CPA, CA/CGA/CMA, are an auditor at a large public accounting firm. Shortly after receiving your professional designation, you were approached by the President of your
Provincial Institute about joining the Professional Conduct Committee (PCC) as a volunteer investigator. The PCC is responsible for investigating potential breaches of the rules that govern the conduct for auditors of financial statements (i.e. Rules of Professional Conduct and the Canadian
Auditing Standards). After each review, the PCC is responsible for making recommendations regarding whether the Discipline Committee should proceed to further investigations and/or a hearing which will determine whether members have in fact breached the rules. Furthermore, they are expected to provide recommendations to the individual or firm as to how they can ensure they do not breach the rules in the future. You thought this sounded like an interesting opportunity and you agreed to join the PCC.
At the January 3, 2013 PCC meeting, you were assigned to investigate two complaints made against Tim Taylor (Taylor), a partner at Holmes LLP. The PCC Chairperson asked you to investigate the complaints and prepare a report to the PCC regarding whether there is merit to the allegations. He asked that you make a conclusion about whether or not the complaints should be referred to the Discipline Committee for a hearing. The Chairperson provided you with information regarding Taylor (Exhibit 1) and details of the complaints (Exhibit 2). Given your experience with a large public accounting firm and the notes he’s gathered from a previous investigator (Exhibit 3), he questions whether or not the working papers were conducted in accordance with CAS and would like to consider if this should be raised with the Canadian
Public Accountability Board (CPAB).
Before starting your investigation, you confirmed that there are no conflicts of
Winter 2014
MGAD10 Case Assignment 1
Case Question
You, CPA, CA/CGA/CMA, are an auditor at a large public accounting firm. Shortly after receiving your professional designation, you were approached by the President of your
Provincial Institute about joining the Professional Conduct Committee (PCC) as a volunteer investigator. The PCC is responsible for investigating potential breaches of the rules that govern the conduct for auditors of financial statements (i.e. Rules of Professional Conduct and the Canadian
Auditing Standards). After each review, the PCC is responsible for making recommendations regarding whether the Discipline Committee should proceed to further investigations and/or a hearing which will determine whether members have in fact breached the rules. Furthermore, they are expected to provide recommendations to the individual or firm as to how they can ensure they do not breach the rules in the future. You thought this sounded like an interesting opportunity and you agreed to join the PCC.
At the January 3, 2013 PCC meeting, you were assigned to investigate two complaints made against Tim Taylor (Taylor), a partner at Holmes LLP. The PCC Chairperson asked you to investigate the complaints and prepare a report to the PCC regarding whether there is merit to the allegations. He asked that you make a conclusion about whether or not the complaints should be referred to the Discipline Committee for a hearing. The Chairperson provided you with information regarding Taylor (Exhibit 1) and details of the complaints (Exhibit 2). Given your experience with a large public accounting firm and the notes he’s gathered from a previous investigator (Exhibit 3), he questions whether or not the working papers were conducted in accordance with CAS and would like to consider if this should be raised with the Canadian
Public Accountability Board (CPAB).
Before starting your investigation, you confirmed that there are no conflicts of