External Audit

Phillips Petroleum Company I believe that Bill Grant was Justified in refusing to provide the requested workplaces to the grand Jury at that time.

Confidentiality is essential when the auditor performs auditing work. It’s a protection of the client’s confidential Information to be exposure to competitors or In public, which may cause some risks for the company’s operation or management. Without the consent of the client, the SPAS audit files should not be available to someone else.However, according to Code f professional conduct Section 301, which Is effective from 1990, there are four exceptions of confidential client Information.

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One of them Is “Subpoena or summons and compliance with laws and regulations”, which means that If there Is a subpoena, the auditing files and the Information obtained by a CPA firm from the client Is not privileged. Therefore, Bill Grant would not be Justified If It happens nowadays. A public accounting firm has the responsibility to support and help its partners and employees when they are subpoenaed to testify regarding a client.A public accounting firm should be responsible for the partners’ and employee’s actions under the appropriate supervision. If there is a subpoena, the accounting firm should contact its professional liability risk advisor or attorney, and communicate with the partners, the employees, the client or any parties involved. Then, figure it out the appropriate actions to take following the laws.

The firm may need to permit the access to the client’s confidential information and be willing to corporate with testimony.I believe the documentation included in tax accrual audit workplaces is likely affected by auditors’ knowledge that those workplaces can be obtained by the FIRS. To protect individual Spas from legal liability, it’s essential to document the work properly. The preparation of good audit documentation can’t be done without the auditor’ knowledge of the auditing materials. Tax accrual audit is a very professional field and it requires the auditors to have a good knowledge of tax rules and also have a good understanding of the business.If the auditors have little knowledge of tax accrual audit, they may not detect the misstatements in the workplaces and fall to perform their responsibility to the client or the public. Good audit documentation not only contributes to a quality audit report, but also can help the auditors to defend an audit In court.

Information to be exposure to competitors or in public, which may cause some risks Spa’s audit files should not be available to someone else. However, according to Code of professional conduct Section 301, which is effective from 1990, there are four exceptions of confidential client information.One of them is “Subpoena or summons and compliance with laws and regulations”, which means that if there is a subpoena, the auditing files and the information obtained by a CPA firm from the client is not privileged. Therefore, Bill Grant would not be Justified if it happens nowadays. Partners, the employees, the client or any parties involved. Then, figure it out the properly.

The preparation of good audit documentation can’t be done without the accrual audit, they may not detect the misstatements in the workplaces and fail to audit in court.