Explore BrainMass

Explore BrainMass

    Should CPAs be allowed to invest in companies they audit

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    1) Today a very high percentage of publicly traded companies are audited by only four
    very large public accounting firms. These firms also do a high percentage of the consulting
    work that is done for publicly traded companies. How does this fact complicate
    the decision regarding whether CPAs should be allowed to invest in companies
    audited by their firm?

    © BrainMass Inc. brainmass.com June 4, 2020, 12:58 am ad1c9bdddf
    https://brainmass.com/business/auditing/should-cpas-be-allowed-to-invest-in-companies-they-audit-370626

    Solution Preview

    The complication arises from the conflict of interest between the CPA as an auditor/consultant and the CPA as an investor. As an investor the aim of the ...

    Solution Summary

    The solution expresses its opinion on should CPAs be allowed to invest in companies they audit

    $2.19

    ADVERTISEMENT