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UOP ACC 546 Case 12.4 Surfer Dude Duds, Inc NEW .pdf

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UOP ACC 546 Case 12.4 Surfer Dude Duds, Inc NEW
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ACC 546 Case 12.4 Surfer Dude Duds, Inc NEW

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[1] What are Scott’s options?
[2] How might a going-concern explanatory paragraph become
a “self-fulfilling prophecy” for Surfer Dude?
[3] Discuss the importance of full and accurate auditor
reporting to the public, and describe possible consequences for
both parties if the going-concern explanatory paragraph and
footnote are excluded. How might Scott convince George that a
going-concern report is in the best interests of all parties
[4] What potential implications arise for the accounting firm if
they issue an unqualified report without the going-concern
explanatory paragraph?
[5] What factors might motivate Scott to be objective in his
decision, despite his personal concern for his friend?
[6] Is it appropriate for an audit partner to have a friendly
personal relationship with a client? At what point could a
personal relationship become an independence issue?

[7] In your opinion, what should Scott do? Briefly justify your
position and explain how you would approach George on
It is recommended that you read the Professional Judgment
Introduction found at the beginning of this book prior to
responding to the following questions.
[8] How is professional skepticism related to professional
judgment? Describe a few factors that might be clouding Scott’s
professional skepticism.
[9] Consider the judgment trap of solving the wrong problem.
What are some problems that Scott is trying to solve? What is
the problem he should be trying to solve? Describe how he
might reconcile the two objectives so that the problem becomes
simpler to resolve?

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