Auditing Cases 6th Edition by Mark Beasley,Frank Buckless,Steven Glover,Douglas Prawitt

تمرين 1

Some of the members of Phar-Mor's financial management team were former auditors for Coopers Lybrand. (a) Why would a company want to hire a member of its external audit team (b) If the client has hired former auditors, would this affect the independence of the existing external auditors (c) How did the Sarbanes-Oxley Act of 2002 and related rulings by the PCAOB, SEC or AICPA affect a public company's ability to hire members of its external audit team (d) Is it appropriate for auditors to trust executives of a client