Briefly describe each of the principles underlying AICPA auditing standards and indi- cate how the action(s) of Holmes resulted in a failure to comply with each principle.
Ray, the owner of a small company, asked Holmes, a CPA, to conduct an audit of the company’s records. Ray told Holmes that an audit was to be completed in time to submit audited financial statements to a bank as part of a loan application. Holmes immediately accepted the engagement and agreed to provide an […]