Simulation

“Auditor Accountability” Please respond to the following:

  • Use the Internet or Strayer Library to research a publically traded company that received an unqualified audit report from external auditors and faced accusations of reporting false or misleading accounting information. Next, discuss the departures from generally accepted accounting principles (GAAP) that you have researched, and give your opinion as to whether or not the Public Company Accounting Oversight Board (PCAOB) should levy sanctions against the CPA firm for issuing the unqualified report. Identify the sanctions and section of the report the company should have modified to address departures from GAAP. Support your position.
  • Compare the code of professional conduct for CPAs to the code of professional conduct for accountants who are non-CPAs. Next, determine the major ethical issues created by the mergers of public accounting firms with non-CPA firms that perform accounting services. Explain your rationale.

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