1. Select an audit case that you prefer.
2. Research the situation using internet resources like the SEC or PCAOB enforcement actions web pages. The listed cases will also have newspaper and journal articles available.
3. Describe the AUDITOR ethical situation you find. Keep in mind that many/most of these cases also have an ethical component related to the client’s managers. The paper is to focus on the auditor ethics. Of course, you may need a brief explanation of what management did that created an ethical dilemma for an auditor. For example, management created a cookie jar reserve. The purposely non-GAAP financial statement in itself is an ethical problem on the part of the client. Certainly management’s improper action is to be discussed briefly. The paper’s main focus should be on what the auditors did about that cookie jar.
4. Research the Audit Standards that pertain to the situation. There may be several that apply.
Write up which standards apply and explain why they are appropriate to the situation.
5. Describe how the auditor did or did not follow the applicable standards.
6. Discuss any consequences the auditor experienced as a result of any ethics lapse.
7. Explain what an auditor should have done and how this might apply to you in the future as an audit professional.
8. Your paper should be 3 – 5 double spaced pages. Use APA formatting and cite at least 2 sources.
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