Gloria and Deloria, CPAS, have recently started their public accounting firm and intend to provide attestation and a varie consulting services for their clients, which are all nonpublic. Both Ms. Gloria and Mr. Deloria have particular expertise in payroll and other disbursement systems. Ms. Gloria is concerned about whether any of the following services would im audit independence. a. For each of the services in the accompanying table, provide a judgment as to whether providing the service would in attest independence. Assume that management has designated a management-level individual to be responsible for o the CPA's services and has established appropriate internal control. Also assume that the client is privately held and do report to the SEC. b. Now assume that the services are being contemplated for nonattest clients. Which of the services does the AICPA C Professional Conduct prohibit under this assumption? Situation Number 1. Service Description Provide all of the initial training and instruction to client employees on a newly implemented payroll information and control system Independence Impaired (Yes, No, Indeterminate) a. attest client b. nonattest client
Gloria and Deloria, CPAS, have recently started their public accounting firm and intend to provide attestation and a varie consulting services for their clients, which are all nonpublic. Both Ms. Gloria and Mr. Deloria have particular expertise in payroll and other disbursement systems. Ms. Gloria is concerned about whether any of the following services would im audit independence. a. For each of the services in the accompanying table, provide a judgment as to whether providing the service would in attest independence. Assume that management has designated a management-level individual to be responsible for o the CPA's services and has established appropriate internal control. Also assume that the client is privately held and do report to the SEC. b. Now assume that the services are being contemplated for nonattest clients. Which of the services does the AICPA C Professional Conduct prohibit under this assumption? Situation Number 1. Service Description Provide all of the initial training and instruction to client employees on a newly implemented payroll information and control system Independence Impaired (Yes, No, Indeterminate) a. attest client b. nonattest client
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter1: Quality Auditing: Why It Matters
Section: Chapter Questions
Problem 30RQSC
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