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CPAs may provide bookkeeping services to their private company audit clients, but there are a number ...

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CPAs may provide bookkeeping services to their private company audit clients, but there are a number ...

CPAs may provide bookkeeping services to their private company audit clients, but there are a number of conditions that must be met if the auditor is to maintain independence. Which of the following conditions is not necessary?

▸ The CPA must not assume a management role or function.

▸ The client must hire an external CPA to approve all of the journal entries prepared by the auditor.

▸ The auditor must comply with GAAS when auditing work prepared by his/her firm.

▸ The client must accept responsibility for the financial statements.

Textbook

Auditing and Assurance Services

Edition: 17^th

Authors: Arens, Elder, Beasley, Hogan

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