Question

PART 1: WHAT ARE THE DUTIES OF DIRECTORS, OFFICERS, AND CPAS TO THEIR CLIENTS/BUSINESSES? DEFINE WHAT EACH ONE MEANS.

  PART 2: DESCRIBE AND ELABORATE ON THE DEFENSES AN AUDITOR HAS FOR A FRAUD CLAIM.

Answer 1

Part 1:

-Duties of Directors are as follows:

1. Planning, developing and managing client projects.

2. Determining a project's schedule, scope and budget.

3. Directing team members in meeting client and company objectives.

-Duties of officers are as follows:

1. Handling client calls and emails, responding in a timely manner.

2. Preparing statement of advice.

3. Preparing documentation for meetings.

4. Listing with internal teams and colleagues to resolve problems and find solutions.

-Duties of CPAS are as follows:

1. The primary task of CPA is to audit the books of clients. If the resulting financial statements of a client meet the CPA's evaluation criteria, the CPA will issue an auditor's opinion concerning the financial statements when they are issued to third parties.

2. Organizing and updating accounting records as needed.

3. Preparing regular, detailed audits to ensure accuracy in financial documents expenditures and investments.

Part 2:

Auditor's never provide unqualified opinion for the auditing performed for the client. Auditor's always provide qualified opinion which means that the financial statements are fairly presented with an exception to a specified area.

Unlike an adverse or disclaimer of opinion, a qualified opinion is still acceptable to lenders, creditors and investors.

Thus, where an auditor suspects the possibility of fraud and the client is not providing sufficient evidences then auditor's can mention in the audit report tye exceptions or areas in which there are chances of misstatements. Thus, excluding himself if in case liability of fraud arises.