Young and Associates Public Accountants,Inc.is performing an audit for Mackey Corporation.Mike,a member of the accounting firm assigned to conduct the audit,is extremely busy,so he takes the "path of least resistance" in terms of using several shortcuts in the auditing process.Despite the shortcuts,he nevertheless discovers a few discrepancies in Mackey's financial data; however,in his desire to retain Mackey Corporation as a client,Mike ignores the discrepancies and issues an unqualified opinion letter in conjunction with the audit.Had Mike not taken shortcuts,and had Mike fully-investigated the discrepancies,he would have discovered that Alan,a Mackey Corporation vice president,has been embezzling from the company.When the embezzlement is later discovered,the company loses a number of clients,who are unsure of the company's financial stability.What is Young and Associates' liability?

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The Answer of Young and Associates Public Accountants,Inc.is performing an audit for Mackey Corporation.Mike,a member of the accounting firm assigned to conduct the audit,is extremely busy,so he takes the "path of least resistance" in terms of using several shortcuts in the auditing process.Despite the shortcuts,he nevertheless discovers a few discrepancies in Mackey's financial data; however,in his desire to retain Mackey Corporation as a client,Mike ignores the discrepancies and issues an unqualified opinion letter in conjunction with the audit.Had Mike not taken shortcuts,and had Mike fully-investigated the discrepancies,he would have discovered that Alan,a Mackey Corporation vice president,has been embezzling from the company.When the embezzlement is later discovered,the company loses a number of clients,who are unsure of the company's financial stability.What is Young and Associates' liability?