To eliminate this problem, John Smith could firstly discuss the issue with the professionals involved and request ideas for the firm's new title. He could also use the previous title as a guideline, as this would provide both a starting point for the new era, as well as the idea that the previous owner and the staff that remains are honored for their contributions to date. According to Rule 505-3 of the AICPA Code of Ethics, it appears that the exact title of the firm is not as important as maintaining practices that are within the public interest. It is both in the firm's and the public interest to remain as close as possible to the previous name, while at the same time indicating that it is now under new management.
NO. 7 the CPA can avoid possible disciplinary action for treating the product recall as an extraordinary item by communicating both with his or her employers and professional entities. If it is determined that such a step is necessary, then the standards have been adhered to and no problems should result, as indicated by ET Section 91.02.1.
NO. 8 There is no reason why the CPA should not familiarize him- or herself with the government audit requirements. Indeed, such additional research is often a requirement of accounting work, regardless of whether or not the normal auditing standards have been followed. This is indicated by Rule 201-1 in Section 201.02 of the AICPA Code of Ethics, which concerns "Competence."
NO. 9 the CPA appears to be searching for excuses...
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