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December 15, 2022

Case 13: Consulting and other Services

General Questions

Case 13: Consulting and other Services

Apply your research. Use your text and other available resources to provide well-reasoned responses.

Scenario: The firm of Abernethy and Chapman was asked to do consulting work for Lakeside that is completely separate and unrelated to the audit of the financial statements. Write a report discussing the potential conflict of interest when an auditor does consulting work for an audit client. Does this relationship cause the independence of the auditor to be violated? Why or why not? Since the Enron debacle, how has the accounting profession dealt with this issue?

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