Auditing Questions and Answers

The firm of Bell & Greer, CPAs, has been asked to perform attest services for Trek Corporation ( a nonpublic company ) for the year ended December 3 1 , Year 5 . Bell & Greer has two offices: one in Los Angeles and the other in Newport Beach. Trek Corporation would be audited by the Los Angeles office. For each of the following cases, indicate whether Bell and Greer's independence is definitely impaired. If it is not definitely impaired, but might be under some circumstances, discuss those circumstances. a . A partner in the Los Angeles office of Bell & Greer has been a long - time personal friend of the chief executive officer of Trek Corporation. b . The former controller of Trek Corporation became a partner in the Newport Beach office of Bell & Greer on March 1 5 , Year 5 , resigning from Trek Corporation on that date. c . A manager in the Newport Beach office of Bell & Greer is the son of the treasurer of Trek Corporation. d . A partner in the Los Angeles office of Bell & Greer jointly owns a cattle ranch in Montana with one of the directors of Trek Corporation. The value of the investment is material to both parties. e . Trek Corporation has not yet paid Bell & Greer for professional services rendered in Year 4 . This fee is substantial in amount and is now 1 5 months past due.

The SOX Act seeks to increase auditor independence through all but which of the following? Requiring accounting firms to elect whether to offer auditing services or nonauditing services to the public Restricting accounting firm employees Involved in auditing from leaving the auditing firm to go to work for an audit cllient Setting mandatory rotation of auditing partners Baniling accounting firms from providing nonauditing consulting services for public companies for which they provide auditing

List five words that contain the Greek or Latin root/affix "aud."

Periodic ______ help to evaluate OPSEC effectiveness. Fill in the blank with the appropriate term.