01 Jul ANSWER THE QUESTIONS. 100 WORDS OF EACH QUESTION
Your friend Preston is in his senior year at a public university in California. He is majoring in accounting. At the end of November, he received an offer for employment at a large public accounting firm called ABC LLC. The offer stipulates that he will begin working at ABC shortly after he graduates. He feels honored and privileged to have received the offer so soon in his senior year. Preston accepts the offer from ABC LLC. Shortly after the winter break, Duck LLC offers Preston an invitation for an interview at their downtown office. Preston sent Duck LLC his resume before accepting the offer from ABC LLC. He accepts the interview opportunity at Duck. After meeting with Duck’s partners, management, and staff, Preston is very impressed with the company. Several days later, Preston receives an offer for employment from Duck LLC. Duck’s hiring manager informs Preston that he has one week to commit to the offer. Like with ABC, the offer stipulates that he will begin working for Duck shortly after he graduates. Preston feels like Duck is the best place to begin his career but he does not want to renege on the offer from ABC LLC. Preston comes to you for advice. What would you say to Preston?
SOX requires mandatory rotation of the lead engagement partner every 5 years. Some propose that there should be a periodic auditing firm rotation to strengthen auditor independence and objectivity. What are your thoughts on requiring mandatory audit firm rotation?
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