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    Should CPAs be allowed to invest in companies they audit

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    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?

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    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