KPMG is the auditing firm for Tech Corporation, a listed computer software company. The audit team assigned to perform the audit includes an Audit Manager, a Senior Auditor and three Audit Assistants. No member of the team has updated their knowledge or experience on IT or the business processes of an IT company. Based on the given scenario answer the following question numbers 29, 30 and 31: What is the appropriate course of action in the given situation? O a. KPMG should file for bankruptcy and close their auditing firm O b. KPMG should place team members who has updated knowledge and skills in IT business processes O c. KPMG should file a complaint against Tech Corporation O d. KPMG should complete the audit engagement with the current audit team

KPMG is the auditing firm for Tech Corporation, a listed computer software company. The audit team assigned to perform the audit includes an Audit Manager, a Senior Auditor and three Audit Assistants. No member of the team has updated their knowledge or experience on IT or the business processes of an IT company. Based on the given scenario answer the following question numbers 29, 30 and 31: What is the appropriate course of action in the given situation? O a. KPMG should file for bankruptcy and close their auditing firm O b. KPMG should place team members who has updated knowledge and skills in IT business processes O c. KPMG should file a complaint against Tech Corporation O d. KPMG should complete the audit engagement with the current audit team

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

KPMG is the auditing firm for Tech Corporation, a listed computer software company. The audit team assigned
to perform the audit includes an Audit Manager, a Senior Auditor and three Audit Assistants. No member of
the team has updated their knowledge or experience on IT or the business processes of an IT company. Based
on the given scenario answer the following question numbers 29, 30 and 31:
What is the appropriate course of action in the given situation?
O a.
KPMG should file for bankruptcy and close their auditing firm
O b. KPMG should place team members who has updated knowledge and skills in IT business processes
O c. KPMG should file a complaint against Tech Corporation
O d. KPMG should complete the audit engagement with the current audit team

Which of the following factors will be MOST affected in the given situation?
O a.
The reputation of the auditing firm
O b. The customers of Tech Corporation
The profits of the Tech Corporation
O d. The regulatory authorities
Which of the following ethical principles will be LEAST affected by the given situation?
O a. Professional Behavior and Professional Competence
O b. Confidentiality, Professional Competence, Integrity
O c. Objectivity, Confidentiality, Integrity
O d. None of the choices is correct

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