CBI Holding Company Case Study
An evaluation system should provide the CPA firm with a reasonable …show more content…
If the board executives had known of the discrepancies it is reasonable to say they would have fixed the problems internally and restated those financial statements affected by the discrepancies. TCW would have a valid argument to take control of CBI through the restatement of these financials. E&Y’s lack of client acceptance standards and internal quality controls led to CBI filing bankruptcy, destroying itself, CBI, and TCW all at once.
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