EY denied any wrongdoing but in April 1999 agreed to pay $185 million to settle...
90.2K
Verified Solution
Link Copied!
Question
Accounting
EY denied any wrongdoing but in April agreed to pay $ million to settle with the injured parties.
Part II: MerryGoRound. Additional charges made against EY included the following recall that MGR hired EY for turnaround consulting services:
EY had a close relationship with Rouse Company, one of MGRs primary landlords EY was soliciting business from Rouse and provided significant tax services
Swidler the law firm that recommended EY to MGR and EY had participated in at least different business arrangements, some of which resulted in Swidler receiving significant fees from EY
EY did not disclose either of these relationships to MGR
Required:
Although this was not an audit engagement for EY some of the allegations against the firm can be framed in terms of the Principles Underlying an Audit Conducted in Accordance with Generally Accepted Auditing Standards. Which of the Principles do you think EY allegedly violated?
Given that nonCPAs who consult are not subject to formal professional standards, describe the advantages and disadvantages that result from CPAs being subject to such standards.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
