Question

In: Accounting

16. Name three ethical reasons why an auditor might not seek re-election or might resign, explaining...

16. Name three ethical reasons why an auditor might not seek re-election or might resign, explaining the nature of the problem and the reasoning behind the resignation

Solutions

Expert Solution

16.

1. Integrity of management : Auditor might feel that he has reason to doubt management integrity , Auditor doesnt feel that client is trustworthy

2. for fees level: the audit fee which is necessary to carry out audit at a profit may have reached a level which is not appropriate according to ACCA guidelines on fee level of public interest entity.if the audit fee more than 15 % of total practice income this is considered as independence problem, due to auditor opinion might be change having fear to lose client,

so in this condition audit to end the relationship to ensure that he did not become dependent on the client.

3. other services:

Auditor may offier various services to client, he may be offered some lucrative consultancy work by client which he want to undertake,but due to this he feels that his more involvement in client business and indenpendence of audit affected.

so as the audit fee lower than fees associated with consultancy work , audit is trying to develop his business service department , he may resign from the audit to take consultancy


Related Solutions

22. Name three reasons why a REIT might be used for real estate investment: 1 ________________________________...
22. Name three reasons why a REIT might be used for real estate investment: 1 ________________________________ 2 ________________________________ 3 _________________________________ 23. Enter the normal tax lives of the following assets for tax depreciation purposes: ______ Assisted living facility building. ______ Hotel building. ______ Land. ______ Industrial building. ______ Apartment complex (building portion).
Provide three reasons why an auditor presumes that there are potential risks of fraud relating to...
Provide three reasons why an auditor presumes that there are potential risks of fraud relating to revenue recognition in entities. Make sure that you explain your reasons clearly.
Create an essay, Explaining with at least three specific reasons, why Medicaid managed care is more...
Create an essay, Explaining with at least three specific reasons, why Medicaid managed care is more complex than private sector managed care or Medicare managed care in regards to providing services to patients.
A manager is explaining to a staff auditor how various situations might affect the audit opinion....
A manager is explaining to a staff auditor how various situations might affect the audit opinion. For each of the following scenarios, identify the appropriate reporting option by matching the scenario with the opinion type from the list provided. Assume that any financial statement effect is material, unless otherwise noted and that US auditing standards are followed. The scope of the auditor’s examination is affected by conditions that preclude the application of a necessary auditing procedure it IS very material...
uestion 36 A manager is explaining to a staff auditor how various situations might affect the...
uestion 36 A manager is explaining to a staff auditor how various situations might affect the audit opinion. For each of the following scenarios, identify the appropriate reporting option by matching the scenario with the opinion type from the list provided. Assume that any financial statement effect is material, unless otherwise noted and that US auditing standards are followed. The scope of the auditor’s examination is affected by conditions that preclude the application of a necessary auditing procedure it IS...
Name three reasons for why bank funding is not a suitable source of funding for startups?
Name three reasons for why bank funding is not a suitable source of funding for startups?
1. Identify three reasons why there may be ethical leadership failures and explain why failed leadership...
1. Identify three reasons why there may be ethical leadership failures and explain why failed leadership occurs. What Is Ethical Leadership? The ethical leader understands that positive relationships built on respect, openness, and trust are critical to creating an ethical organization environment. The underlying principles of ethical leadership are: integrity, honesty, fairness, justice, responsibility, accountability, and empathy. Covey addresses a principle-centered leadership approach to one’s personal life and organization development. He emphasizes that principle-centered leadership occurs when one’s internal values...
1. Explain three reasons why a mutation in a single allele might be difficult to detect...
1. Explain three reasons why a mutation in a single allele might be difficult to detect in a population. 2. Why is natural selection the most likely evolutionary mechanism to lead to adaptation? Can any other evolutionary mechanism lead to adaptation? Be sure to elaborate on your answers. 3. In a hypothetical population of 100 frogs there exists a gene with two alleles, D and d. 28 of the frogs are homozygous dominant (DD), and 22 are homozygous recessive (dd)....
name the three general reasons why a client can be involuntary committed to a mental health...
name the three general reasons why a client can be involuntary committed to a mental health facility. can the client who is admitted involuntarily refuse treatment ? why or why not
give several (at least two, though three or four might be better) reasons why countries in...
give several (at least two, though three or four might be better) reasons why countries in a particular region might be more likely to trade with other countries in that same region and briefly explain why. You could consider the country pairs of Germany and France, the united states and Canada, China and Thailand, and United arabs Emirates and Saudi arabia as example ( Though you don’t have to use them, and you could other as example)
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT