GEN COMBO LL PRINCIPLES OF AUDITING & OTHER ASSURANCE SERVICES; CONNECT AC
GEN COMBO LL PRINCIPLES OF AUDITING & OTHER ASSURANCE SERVICES; CONNECT AC
21st Edition
ISBN: 9781260427202
Author: Ray Whittington, Kurt Pany
Publisher: McGraw-Hill Education
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Chapter 3, Problem 31QRA
To determine

Suggest a response from Ms. S regarding the use of condominiums.

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Tracy Smith, CPA, is in charge of the audit of Olympic Fashions, Inc. Seven young members of the public accounting firm's professional staff are working with Smith on this engagement, and several of the young auditors are avid skiers. Olympic Fashions owns two condominiums in Aspen, Colorado, that it uses primarily to entertain clients. The controller of Olympic Fashions has told Smith that she and any of her audit staff are welcome to use the condominiums at no charge any time that they are not already in use. How should Smith respond to this offer? Explain.
The firm of McGraw and West, CPAS, has two offices, one in Phoenix and one in San Diego. The firm has audited the Cameron Corporation out of its Phoenix office for the past five years. For each of the following independent cases, which occurred during the year under audit, indicate whether Independence would be impaired. a. Mary McGraw, a partner in the San Diego office, fell wildly in love with Bill Smith, the treasurer for Cameron Corporation. They were married in Las Vegas. During the week, McGraw still lives in San Diego and works in that office, while Bill Smith lives in Phoenix, working for Cameron. On weekends they commute to their home In Yuma. Mary does not participate in the engagement. b. Jim West is the father of Will West, a Phoenix partner. Jim West has a material Investment in Cameron. Will West is unaware of his father's Investment but does participate in the engagement. c. Bill Johnson, a senior in the San Diego office, has a material Investment in the capital stock of…
Julia is a CPA employed by Super Great Value (SGV) and Co. Cecilia is a partner, and her cluster is engaged in an audit of the financial statements of Jellybean Fruits Corporation (JFC).  During the preliminary conference with JFC's audit committee, one of the committee members made the following suggestions to Ms. Julia:That last year's audit was finished by SGV on time, but JFC is requesting for a shorter audit period this year.That last year's audit work be divided among more team members this year. Last year's audit involved three audit associates. For this year, four members should be included. JFC is willing to pay for any additional costs it may entail.That one associate should be working auditing current assets and current liabilities; another associate should focus on property and equipment and non-current liabilities; another associate should focus on the minutes of the board's meetings and the shareholders' equity accounts; and the last associate will audit the income and…
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