Question

PART 1: LIST FOUR OF THE SEVEN SIGNS OF ETHICAL COLLAPSE.

PART 2:MAY A CPA ACCESS A CONTINGENT FEE?

PART 3: YOU ARE A STAFF ACCOUNTANT AUDITING A “PRIVATE COMPANY” AND FIND A MISREPRESENTATION DURING REVENUE RECOGNITION TESTING. WHO IS THE FIRST PERSON YOU SHOULD INFORM ABOUT YOUR FINDING. WHO ARE THE OTHER PARTIES YOU WILL INFORM ABOUT THE MISREPRESENTATION IF THE FIRST PARTY DOES NOTHING ABOUT THE MISREPRESENTATION.

Answer 1

Part-1

Peressure to mantain numbers

Fear and silence

A weak Board

PART-2

A CPA must have have access to all the contingent assets and laibilites and he must report the same in the audit report in the form of notes.So it means he must have access to all the fee.But he should not receive any contingent fee.

Part-3

Reportng of misrepresentaton is depends upon the severty to the instituton.Based on standardsof auditng,he must assess this misrepresentaton is coused due to error or fraud.

then he should identify and assess the risk of material misstatement in the financial statement

if he identfied as fruad ,he must report to the immedate /rtop management based on ts severty.