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Week 2 e-Activity

  • Use the Internet to research a
    publically-traded company that received an unqualified audit report from
    external auditors and faced accusations of reporting false or
    misleading accounting information. Be prepared to discuss

“Auditor Accountability” Please respond to the following:

  • From the e-Activity, discuss the departures from generally accepted
    accounting principles (GAAP) that you have researched, and give your
    opinion as to whether or not the Public Company Accounting Oversight
    Board (PCAOB) should levy sanctions against the CPA firm for issuing the
    unqualified report. Identify the sanctions and section of the report
    the company should have modified to address departures from GAAP.
    Support your position.
  • Compare the code of professional conduct for CPAs to the code of
    professional conduct for accountants who are non-CPAs. Determine the
    major ethical issues created by the mergers of public accounting firms
    with non-CPA firms that perform accounting services. Explain your
    rationale.

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