[SOLVED] Legal and Ethical Standards

All of the following prompts will require the use of the attached “Financial Statements” and “Background Information” documents along with additional external research in order to perform high-level analysis as needed to reach conclusions regarding the current-year audit of the company.  A.  Develop an internal report (suggested length of 2–5 pages) addressed to the senior partner that discusses any potential legal or ethical issues regarding the PGM engagement by doing the following: 1.  Identify three potential legal issues or conflicts associated with FRA’s ability to audit PGM. a.  Discuss the rules in place that address these legal issues or conflicts. 2.  Identify three potential legal issues or conflicts associated with FRA’s ability to audit PGM’s 401(k) plan. a.  Discuss the rules in place that address these legal issues or conflicts. 3.  Identify the three potential ethical issues or conflicts associated with FRA’s ability to audit PGM. a.  Discuss the rules in place that address these ethical issues or conflicts. 4.  Identify the three potential ethical issues or conflicts associated with FRA’s ability to audit PGM’s 401(k) plan. a.  Discuss the rules in place that address these ethical issues or conflicts. 5.  Identify two potential fraud risks within PGM or with PGM’s 401(k) plan.   B.  Acknowledge sources, using in-text citations and references, for content that is quoted, paraphrased, or summarized.   Note: Specific citation of accounting rules is not required.

 

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