Principles Of Auditing & Other Assurance Services
21st Edition
ISBN: 9781259916984
Author: WHITTINGTON, Ray, Pany, Kurt
Publisher: Mcgraw-hill Education,
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 36OQ
a.
To determine
Explain whether Mr. Z violates the AICPA Code of Professional Conduct by performing the engagement.
b.
To determine
Explain whether Mr. ZI (current CPA) violate the AICPA Code of Professional Conduct by performing the engagement.
c.
To determine
Explain whether Mr. Z (current CPA) violate the AICPA Code of Professional Conduct by performing the engagement for 15% share in the saving from payroll design.
d.
To determine
Explain whether Mr. Z violates the AICPA Code of Professional Conduct by performing the engagement if Company W is a public company.
e.
To determine
Explain whether Mr. ZI (current CPA) violate the PCOAB rules by performing the engagement.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Mary Tan is the controller for Duck Associates, a property management company in Portland, Oregon. Each year, Tan and payroll clerk Toby Stock meet with the external auditors about payroll accounting. This year, the auditors suggest that Tan consider outsourcing Duck Associates' payroll accounting to a company specializing in payroll processing services. This would allow Tan and her staff to focus on their primary responsibility: accounting for the properties under management. At present, payroll requires 1.5 employee positions—payroll clerk Toby Stock and a bookkeeper who spends half her time entering payroll data in the system. Tan considers this suggestion, and she lists the following items relating to outsourcing payroll accounting:
The current payroll software that was purchased for $4,000 three years ago would not be needed if payroll processing were outsourced.
Duck Associates' bookkeeper would spend half her time preparing the weekly payroll input form that is given to the…
>
Mary Tan is the controller for Duck Associates, a property management company in
Portland, Oregon. Each year, Tan and payroll clerk Toby Stock meet with the external
auditors about payroll accounting. This year, the auditors suggest that Tan consider
outsourcing Duck Associates's payroll accounting to a company specializing in payroll
processing services. This would allow Tan and her staff to focus on their primary
responsibility: accounting for the properties under management. At present, payroll
requires 1.5 employee positions-payroll clerk Toby Stock and a bookkeeper who
spends half her time entering payroll data in the system.
meniups/l
Tan considers this suggestion, and she lists the following items relating to out-
sourcing payroll accounting:
a. The current payroll software that was purchased for $4,000 three years ago would
not be needed if payroll processing were outsourced.
b.
uck Associates's bookkeeper would spend half her time preparing the weekly
payroll input form that…
Mary Tan is the controller for Duck Associates, a property management company in Portland, Oregon. Each year, Tan and payroll clerk Toby Stock meet with the external auditors about payroll accounting. This year, the auditors suggest that Tan consider outsourcing Duck Associates’ payroll accounting to a company specializing in payroll processing services. This would allow Tan and her staff to focus on their primary responsibility: accounting for the properties under management. At present, payroll requires 1.5 employee positions: payroll clerk Toby Stock and a bookkeeper who spends half her time entering payroll data in the system.
Tan considers this suggestion, and she lists the following items relating to outsourcing payroll accounting:
a. The current payroll software that was purchased for $4,000 three years ago would not be needed if payroll processing were outsourced.
b. Duck Associates’ bookkeeper would spend half her time preparing the weekly payroll input form that is…
Chapter 3 Solutions
Principles Of Auditing & Other Assurance Services
Ch. 3 - What is meant by the term ethical dilemma?...Ch. 3 - What are the two major types of constraints on...Ch. 3 - Prob. 3RQCh. 3 - Prob. 4RQCh. 3 - Prob. 5RQCh. 3 - Prob. 6RQCh. 3 - Prob. 7RQCh. 3 - Bill Scott works as a manager in the Phoenix...Ch. 3 - Prob. 9RQCh. 3 - Prob. 10RQ
Ch. 3 - Prob. 11RQCh. 3 - Prob. 12RQCh. 3 - Prob. 13RQCh. 3 - Prob. 14RQCh. 3 - Prob. 15RQCh. 3 - Prob. 16RQCh. 3 - Prob. 17RQCh. 3 - Prob. 18RQCh. 3 - Prob. 19RQCh. 3 - Prob. 20RQCh. 3 - Prob. 21RQCh. 3 - Prob. 22RQCh. 3 - Prob. 23RQCh. 3 - Prob. 24RQCh. 3 - Prob. 25RQCh. 3 - Prob. 26RQCh. 3 - Prob. 27QRACh. 3 - Prob. 28QRACh. 3 - Prob. 29QRACh. 3 - Prob. 30QRACh. 3 - Prob. 31QRACh. 3 - Prob. 32QRACh. 3 - Ron Barber, CPA, is auditing the financial...Ch. 3 - Prob. 34AOQCh. 3 - Prob. 34BOQCh. 3 - Prob. 34COQCh. 3 - Prob. 34DOQCh. 3 - Prob. 34EOQCh. 3 - Prob. 34FOQCh. 3 - Prob. 34GOQCh. 3 - Prob. 34HOQCh. 3 - Prob. 34IOQCh. 3 - Prob. 34JOQCh. 3 - Prob. 34KOQCh. 3 - Prob. 34LOQCh. 3 - Prob. 35OQCh. 3 - Prob. 36OQCh. 3 - Prob. 37OQCh. 3 - Prob. 38OQCh. 3 - Prob. 39OQCh. 3 - Prob. 40OQCh. 3 - Prob. 41OQCh. 3 - Prob. 42OQCh. 3 - Gary Watson, a graduating business student at a...Ch. 3 - Prob. 44PCh. 3 - Prob. 45PCh. 3 - Prob. 46PCh. 3 - Prob. 47PCh. 3 - Prob. 48PCh. 3 - Prob. 49ITCCh. 3 - Prob. 50ITCCh. 3 - Prob. 51RDC
Knowledge Booster
Similar questions
- Mel Snow is the manager of a firm, Taxation Matters, which specialises in the preparation of income tax returns. The firm offers two basic products: the preparation of income tax returns for wage and salary earners and the preparation of income tax returns for small businesses. Any clients requiring more complex services are referred to Mel's brother Roger, who is a partner in a large firm of chartered accountants. The processing of wage and salary tax returns is quite straightforward, and the firm uses a software package to process data and print the return. A software package is also used to prepare returns for small businesses, although more information is required, particularly about business expenses. Mel has only recently joined Taxation Matters and he is concerned about the firm's pricing policy, which sets a flat fee of $60 per return for wage and salary clients and $300 for small businesses. He decides to use activity-based costing to estimate the costs of providing each of…arrow_forwardMel Snow is the manager of a firm, Taxation Matters, which specialises in the preparation of income tax returns. The firm offers two basic products: the preparation of income tax returns for wage and salary earners, and the preparation of income tax returns for small businesses. Any clients requiring more complex services are referred to Snow’s brother Roger, who is a partner in a large firm of chartered accountants. The processing of wage and salary tax returns is quite straightforward, and the firm uses a software package to process data and print the return. A software package is also used to prepare returns for small businesses, although more information is required, particularly about business expenses. Snow has only recently joined Taxation Matters and he is concerned about the firm’s pricing policy, which sets flat fees of $60 per return for wage and salary clients and $300 for small businesses. He decides to use activity-based costing to estimate the costs of providing each of…arrow_forwardMel Snow is the manager of a firm, Taxation Matters, which specialises in the preparation of income tax returns. The firm offers two basic products: the preparation of income tax returns for wage and salary earners, and the preparation of income tax returns for small businesses. Any clients requiring more complex services are referred to Snow's brother Roger, who is a partner in a large firm of chartered accountants. The processing of wage and salary tax returns is quite straightforward, and the firm uses a software package to process data and print the return. A software package is also used to prepare returns for small businesses, although more information is required, particularly about business expenses. Snow has only recently joined Taxation Matters and he is concerned about the firm's pricing policy, which sets flat fees of $60 per return for wage and salary clients and $300 for small businesses. He decides to use activity-based costing to estimate the costs of providing each of…arrow_forward
- Mel Snow is the manager of a firm, Taxation Matters, which specialises in the preparation of income tax returns. The firm offers two basic products: the preparation of income tax returns for wage and salary earners, and the preparation of income tax returns for small businesses. Any clients requiring more complex services are referred to Snow’s brother Roger, who is a partner in a large firm of chartered accountants.The processing of wage and salary tax returns is quite straightforward, and the firm uses a software package to process data and print the return. A software package is also used to prepare returns for small businesses, although more information is required, particularly about business expenses.Snow has only recently joined Taxation Matters and he is concerned about the firm’s pricing policy, which sets flat fees of $60 per return for wage and salary clients and $300 for small businesses. He decides to use activity-based costing to estimate the costs of providing each of…arrow_forwardMel Snow is the manager of a firm, Taxation Matters, which specialises in the preparation of income tax returns. The firm offers two basic products: the preparation of income tax returns for wage and salary earners, and the preparation of income tax returns for small businesses. Any clients requiring more complex services are referred to Snow's brother Roger, who is a partner in a large firm of chartered accountants. The processing of wage and salary tax returns is quite straightforward, and the firm uses a software package to process data and print the return. A software package is also used to prepare returns for small businesses, although more information is required, particularly about business expenses. Snow has only recently joined Taxation Matters and he is concerned about the firm's pricing policy, which sets flat fees of $60 per return for wage and salary clients and $300 for small businesses. He decides to use activity-based costing to estimate the costs of providing each of…arrow_forwardMel Snow is the manager of a firm, Taxation Matters, which specialises in the preparationof income tax returns. The firm offers two basic products: the preparation of income tax returnsfor wage and salary earners, and the preparation of income tax returns for small businesses.Any clients requiring more complex services are referred to Snow’s brother Roger, who is apartner in a large firm of chartered accountants.The processing of wage and salary tax returns is quite straightforward, and the firm uses asoftware package to process data and print the return. A software package is also used toprepare returns for small businesses, although more information is required, particularly aboutbusiness expenses.Snow has only recently joined Taxation Matters and he is concerned about the firm’s pricingpolicy, which sets flat fees of $60 per return for wage and salary clients and $300 for smallbusinesses. He decides to use activity-based costing to estimate the costs of providing each ofthese…arrow_forward
- Clara Hudnall is Conosis Incorporated’s payroll accountant. During a casual conversation with co-workers, she learns that Thorben Vinkovic, a co-worker, is deliberately overstating the number of hours worked during each pay period because of a personal economic situation. Which ethical guidelines pertain to this situation?arrow_forwardSuppose that Demont has been given a summer job as an intern at Isaac Aircams, a company that manufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help it finance its growth. The bank requires financial statements before approving such a loan. Classify each cost listed below as either product costs or period costs for the purpose of preparing the financial statements for the bank. Costs Product Cost/Period Cost 1. Depreciated on salesperson's cars 2. Rent on equipment used in the factory 3. Lubricants used for machine maintenance 4. Salaries of personnel who work in the finished goods warehouse 5. Soap and paper towels used by factory workers at the end of a shiftarrow_forwardMel Snow is the manager of a firm, Taxation Matters, which specialises in the preparation of incometax returns. The firm offers two basic products: the preparation of income tax returns for wage andsalary earners, and the preparation of income tax returns for small businesses. Any clients requiringmore complex services are referred to Snow’s brother Roger, who is a partner in a large firm ofchartered accountants.The processing of wage and salary tax returns is quite straightforward, and the firm uses a softwarepackage to process data and print the return. A software package is also used to prepare returns forsmall businesses, although more information is required, particularly about business expenses.Snow has only recently joined Taxation Matters and he is concerned about the firm’s pricing policy,which sets flat fees of $60 per return for wage and salary clients and $300 for small businesses. Hedecides to use activity-based costing to estimate the costs of providing each of these…arrow_forward
- Mel Snow is the manager of a firm, Taxation Matters, which specialises in the preparation of incometax returns. The firm offers two basic products: the preparation of income tax returns for wage andsalary earners, and the preparation of income tax returns for small businesses. Any clients requiringmore complex services are referred to Snow’s brother Roger, who is a partner in a large firm ofchartered accountants.The processing of wage and salary tax returns is quite straightforward, and the firm uses a softwarepackage to process data and print the return. A software package is also used to prepare returns forsmall businesses, although more information is required, particularly about business expenses.Snow has only recently joined Taxation Matters and he is concerned about the firm’s pricing policy,which sets flat fees of $60 per return for wage and salary clients and $300 for small businesses. Hedecides to use activity-based costing to estimate the costs of providing each of these…arrow_forwardMel Snow is the manager of a firm, Taxation Matters, which specialises in the preparation of incometax returns. The firm offers two basic products: the preparation of income tax returns for wage andsalary earners, and the preparation of income tax returns for small businesses. Any clients requiringmore complex services are referred to Snow’s brother Roger, who is a partner in a large firm ofchartered accountants.The processing of wage and salary tax returns is quite straightforward, and the firm uses a softwarepackage to process data and print the return. A software package is also used to prepare returns forsmall businesses, although more information is required, particularly about business expenses.Snow has only recently joined Taxation Matters and he is concerned about the firm’s pricing policy,which sets flat fees of $60 per return for wage and salary clients and $300 for small businesses. Hedecides to use activity-based costing to estimate the costs of providing each of these…arrow_forwardSuppose that Demont has been given a summer job as an intern at Isaac Aircams, a company that manufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help it finance its growth. The bank requires financial statements before approving such a loan. Classify each cost listed below as either product costs or period costs for the purpose of preparing the financial statements for the bank. Cost Product Cost/Period Cost 1. Factory supervisors' salaries 2. Heat, water, and power consumed in the factory 3. Materials used for boxing products for shipment overseas. Units are normally boxed. 4. Advertising costs 5. Workers' compensation insurance for factory employeearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education