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Based on the audit documentation guidelines from the PCAOB,

Based on the audit documentation guidelines from the PCAOB, discuss whether or not you believe these guidelines are adequate to protect a certified public accountant from a lawsuit that may be filed by shareholders of a company.
Discuss any additional documentation that you believe should be required to protect a company's shareholders from potential financial harm.

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â?¢ Based on the audit documentation guidelines from the PCAOB, discuss whether or not you believe these guidelines are adequate to protect a certified public accountant from a lawsuit that may be filed by shareholders of a company.

This is a catch 22 question. When the shareholders of a company have found that fraud has taken place, and the accountant did not detect the fraud, no amount of documentation will prevent the shareholders from blaming and taking legal action against the CPAs that were auditing the company. This is exactly what happened at Enron. Although the accountants were ...

Solution Summary

Based on the audit documentation guidelines from the PCAOB, discuss whether or not you believe these guidelines are adequate to protect a certified public accountant from a lawsuit that may be filed by shareholders of a company.
Discuss any additional documentation that you believe should be required to protect a company's shareholders from potential financial harm.

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