Main Issues
The main issues involved in this case are as follows:
Deloitte: Lack of property internal control system Lack of due professional care
Leadership Oversight Committee: Lack of independence Lack of expertise
Anderson: Provides consulting service to engagement team Act as internal director
Though the introduction above, we learned that Anderson became an “associated person” of Deloitte during the suspension. He also participated in three nation office consultations with public company audit engagement teams. The term “associated person” is defined as any individual proprietor, partner, shareholder, principal, accountant, or other professional employee of …show more content…
These actions violated the PCAOB Rule 3400T System of Quality Control for a CPA Firm 's Accounting and Auditing Practice; QC §20.01. Each registered public accounting firm is required to develop, implement and maintain a system of quality control for its accounting and auditing practice. A registered public accounting firm has a responsibility to ensure that its personnel comply with the professional standards applicable to its accounting and auditing practice. A system of quality control is broadly defined as a process to provide the firm with reasonable assurance that its personnel comply with applicable professional standards and the firm 's standards of quality. The policies and procedures designed to implement the system in one segment of a firm 's practice may be the same as, different from, or interrelated with the policies and procedures designed for another segment, but the purpose of the system is the same for all segments of a firm 's practice (PCAOB Rule 3400T, QC §20.03) …show more content…
Second, assign a supervisor to monitor the Anderson’s work. At the same time, the supervisor and Anderson need to sign the LOC approved job description. Third, the LOC form a subcommittee to deal with the matters arising between regularly scheduled LOC meetings involved Anderson subject to PCAOB-ordered restrictions. Forth, quarterly meeting and sign the documentation between the supervisor and the members of LOC to ensure the Anderson’s activities are consist with the regulatory requirements. The last one is that if any time any reason, Deloitte find Anderson has not consists with PCAOB-order restriction or supervisor, or the member of the LOC cannot to sign the quarterly compliance document, Deloitte must report the information to the
The main issues involved in this case are as follows:
Deloitte: Lack of property internal control system Lack of due professional care
Leadership Oversight Committee: Lack of independence Lack of expertise
Anderson: Provides consulting service to engagement team Act as internal director
Though the introduction above, we learned that Anderson became an “associated person” of Deloitte during the suspension. He also participated in three nation office consultations with public company audit engagement teams. The term “associated person” is defined as any individual proprietor, partner, shareholder, principal, accountant, or other professional employee of …show more content…
These actions violated the PCAOB Rule 3400T System of Quality Control for a CPA Firm 's Accounting and Auditing Practice; QC §20.01. Each registered public accounting firm is required to develop, implement and maintain a system of quality control for its accounting and auditing practice. A registered public accounting firm has a responsibility to ensure that its personnel comply with the professional standards applicable to its accounting and auditing practice. A system of quality control is broadly defined as a process to provide the firm with reasonable assurance that its personnel comply with applicable professional standards and the firm 's standards of quality. The policies and procedures designed to implement the system in one segment of a firm 's practice may be the same as, different from, or interrelated with the policies and procedures designed for another segment, but the purpose of the system is the same for all segments of a firm 's practice (PCAOB Rule 3400T, QC §20.03) …show more content…
Second, assign a supervisor to monitor the Anderson’s work. At the same time, the supervisor and Anderson need to sign the LOC approved job description. Third, the LOC form a subcommittee to deal with the matters arising between regularly scheduled LOC meetings involved Anderson subject to PCAOB-ordered restrictions. Forth, quarterly meeting and sign the documentation between the supervisor and the members of LOC to ensure the Anderson’s activities are consist with the regulatory requirements. The last one is that if any time any reason, Deloitte find Anderson has not consists with PCAOB-order restriction or supervisor, or the member of the LOC cannot to sign the quarterly compliance document, Deloitte must report the information to the