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Avis Love, Staff Accountant Case

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It should be a essay containing these questions about Avis Love, Staff Accountant . Please include work-cited.

1. Would it have been appropriate for Avis to substitute another store for Store 51 after she discovered the cutoff errors in that stores accounting records? Defend your answer.
2. Identify the parties potentially affected by the outcome of the ethical dilemma laced by Avis Love? What obligation, if any, did Avis have to each of these parties?
3. Does the AICPA's Code of Professional Conduct permit auditors from developing friendships with the client personnel? If, not, what measures can auditors take to prevent such friendships from interfering with the performance of their professional responsibilities?
4. Identify the key audit objectives associated with the year-end cash receipts and sales cutoff tests.
5. What method would you have recommended that Avis or her colleagues use in deciding whether the cutoff errors she discovered had a material impact on Lowell's year-end financial statements? Identify the factor or benchmarks that should have been considered in making the decision.

I need help the most with questions 1 and 5 but if possible 3 too.

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Your tutorial is 623 words with three quotes from the auditing standards to support the comments.

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Case 6.5 Avis Love, Staff Accountant

1. Would it have been appropriate for Avis to substitute another store for Store 51 after she discovered the cutoff errors in that stores accounting records? Defend your answer.

No, once the sample has been selected, the auditor does not deviate because he doesn't like the results. AU 350.25 explains: "Audit procedures that are appropriate to the particular audit objective should be applied to each sample item." You must test each item sampled.

2. Identify the parties potentially affected by the outcome of the ethical dilemma laced by Avis Love? What obligation, if any, did Avis have to each of these parties?

Avis: If she chose the unethical choice, it might make it easier to do so next time. She would likely lose self respect and could also lose the respect of others and her professional certification once the choice was clear to others. Her days as an auditor would be over as she lost her objectivity.

Teddy: Avis's supervisor might seem complicit in not testing the sample completely as he was likely involved in the selection choice during planning. Avis's choice would likely reflect poorly on him as others might not know if he was part ...

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  • MSc, University of Virginia
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