Audit Law LLC

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Auditors determine whether a company’s financial statements are presented fairly and accordance with the financial reporting framework. When providing auditing and other attestation services, an auditor should be independent. Amanda was assigned to audit LAW LLC financial statements. Amanda was faced with an ethical dilemma when LAW LLC’s audit report showed little evidence of the different assets on its balance sheet. Also, LAW LLC violated their loan covenant which due whether it was on the financial statement. As an auditor, you are required to follow the principles of professional conduct by the AICPA. There are steps Amanda can take to resolve the ethical dilemma and not violate the principles of professional conduct. The steps are to obtain relevant facts, identify the ethical issues from facts, identify the alternatives available to the person …show more content…
Saul Jordan felt LAW LLC was trustworthy and honest. Saul Jordan thought it would be quick do an audit report on LAW LLC. Amanda, who is also an auditor, saw that there was a material misstatement when analyzing LAW LLC. Saul Jordan disagreed and did not look into the issue. Saul Jordan violated the principle called responsibility because he did not perform services or cooperate with Amanda when auditing LAW LLC financial statements. As the audit partner, Saul Jordan violated the principle called integrity because he did not resolve the error when Amanda pointed out an issue. Saul Jordan did not test all decision and determine if it’s something an integrity person would do. In addition, Saul Jordan violated the principle called objectivity and independence because he wasn’t impartial when Amanda brought up an issue with LAW LLC financial statements. Also, Saul Jordan isn’t independent because of his relationship with LAW LLC. Due care was violated by Saul Jordan because he did not show diligence and care to his

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