Odonnel Incorporated has struggled financially and has been unable to pay the audit fee to its auditor, Seale and Seale, CPAs, for the 2011 and 2012 audits. Seale and Seale is currently planning the 2013 audit.
Jessica Alma has been serving as the senior auditor on the audit of Carolina Bio Health, Inc. Because of her outstanding work, the head of internal audit at Carolina Bio Health extended her an offer of employment to join the internal audit department as an audit manager. When the discussions with Carolina Bio Health began, Jessica informed her office's managing partner and was removed from the audit engagement.
Morris and Williams, a regional CPA firm, is providing information systems consulting to one of their publicly traded audit clients. They are assisting in the implementation of a new financial reporting system selected by management.
Audrey Glover is a financial analyst in the financial reporting department of Technologies International, a privately held corporation. Audrey was asked to prepare several journal entries for Technologies International related to transaction that have not yet occurred. The entries are reflected in financial statements that the company recently provided to the bank in connection with a loan outstanding due to the bank.
Austin and Houston, GPAs, is performing consulting services to help management of McAlister Global Services streamline its production operation. Austin and Houston structured the fee for this engagement to be a fixed percentage of costs saving that result once the new processes are implemented. Austin and Houston perform no other services for McAlister Global.