Problem
A. Which section of the regulations requires a CPA to comply with Generally Accepted Accounting Principles and Generally Accepted Auditing Standards?
If compliance is required by other organizations (PCAOB, AICPA, etc.) why do you think this requirement is also included in the regulations?
B. Assume that during the course of an audit, an auditor identifies errors in the accounting records and financial statements. They notify the client and then prepare proposed journal entries for the client to correct the errors. These journal entries become part of the audit working papers. The client is delinquent in paying the audit fee, but they have requested a copy of the proposed journal entries.
Despite not being paid for their work, is the CPA firm required to provide the journal entries to the client?
Which regulation provides guidance on this question?