Gloria and Deloria
Gloria and Deloria
Gloria and Deloria
Submitted to:
Prof. Mark Glenn G. Parpan
Submitted by:
Aprile H. Anonuevo
26 November 2018
Case
Gloria and Deloria, CPAs, have recently started their public accounting firm and intend to provide
attestation a variety of consulting services for client, which are all nonpublic. Both Ms. Gloria and
Deloria have particular expertise in designing payroll and other disbursement systems. Ms. Gloria is
concerned about whether any of the following services would impair their audit independence.
A. For each of the services in the accompanying table provide a judgement as to whether providing
the service would impair attest independence. In all 12 situations, assume that management has
designated a management-level individual to be responsible for overseeing the CPA’s services and
established appropriate internal control. Also, assume that the client is privately held and does not
report to the SEC.
B. Now assume that the 12 services are being contemplated for nonattest clients. Which of the
services does the AICPA Code of Professional Conduct prohibit under this assumption?
Case Study
Are the services offered by the firm conforms to the Independence Rule of Audit?
As professional accountants, we oath to follow the standards and conducts implemented
in the accountancy profession. Therefore, it is expected of us to always render a righteous
service.
Any of the services mentioned may be performed when the client is not an attest client.
Being more attentive to the Being on time in changes will Attending to more seminars and
changes of the standards/ make your outputs more programs can be expensive and
attending more seminars appropriate. Attending to more time-consuming.
seminars can give you more
knowledge and skills. It can also
help you remember some
information that you might have
forgotten.
Reviewing the standards and code Reviewing standards from time to Reviewing the standards and code
of conduct/consulting experts if time specially when applied to of conduct can be a hassle and will
help is needed in some works services and consulting an expert require time. Consulting an expert
on works that are vague for you to can be an additional expense to
accomplish can boost your the operation.
confidence because you are
complying appropriately.
V. Recommendation
All the alternative courses will definitely be a benefit to the firm but if I would firmly
recommend the third course. As a practitioner of a profession, it is our duty and responsibility
to always review the standards and conducts that we need to follow for us to be efficient and
effective. We all know that we also have limitations so to cover that up, it is always to consult
an expert to appropriately do the work.
VI. Conclusion
Instead of dwelling in mistakes, we should always remember that even if how far
we’ve come already, we will still and always have a room for improvement. It is great that our
technology can help us to easily look and review the standards and code of conduct. We
should be grateful that in just some type of letters in a keyboard it can already give us results.
It is one way of telling ourselves that in case of doubts in our work, we can always refer to our
effective standards.
VII. References
Farooq, G. (1997). Quality management practices among A/E organizations (Order
No. 1390782). Available from ProQuest Central. (304464842). Retrieved from
https://search.proquest.com/docview/304464842?accountid=31259
Independence, Integrity, and Objectivity. Retrieved from https://pcaobus.org/Stand
ards/EI/Pages/ET101.aspx
Peer Review Summary. Retrieved from https://www.aicpa.org/research/standards/
peerreview/peer-review-summary.html
Vaicekauskas, D. (2014). A STUDY ON AUDIT FIRM’S QUALITY CONTROL SYSTEMS.
Volume 9, Number 1. Retrieved from http://erd.asu.lt/ssaf/article/view/150.