Paper , Order, or Assignment Requirements

Week 1 Discussion Questions

Reminder – I do not allow direct quotes in student’s work in this class. You need to paraphrase and cite your outside sources. “Outside sources” do not include the text and so you don’t need to cite it.

1) GAAS standards emphasize the critical importance of auditor independence and objectivity, as does the definition of auditing. Do you believe that auditors can be sufficiently independent and objective when the auditee is also a client and is paying the auditor’s fees? Why or why not? Answer in your own words and defend your position.
Hint – I want you to consider both the auditor’s and the client’s incentives to provide a high quality and aggressive audit under these conditions. By “aggressive” I mean an audit that is willing to question the client’s accounting procedures when appropriate.

2) The text discusses several legal forms of organization – proprietorship, general partnership, general corporation, professional corporation, limited liability company, and limited liability partnership. Should states limit the form of organization that CPA firms can use and why? If so, which forms should be prohibited and why? Ignore taxation issues and focus on the different liability levels of the different forms of organization. Answer in your own words and defend you choices.