You are engaged to assist in the installation of a new computerized production system for your client. Because the firm did not have experienced staff available for the engagement, your firm assigned several newly hired staff assistants without sufficient supervision. As a result, the client incurred significant losses when the production system crashed, causing significant backlogs and lost production sales. What are the possible legal implications of this situation for your CPA firm?

You are engaged to assist in the installation of a new computerized production system for your client. Because the firm did not have experienced staff available for the engagement, your firm assigned several newly hired staff assistants without sufficient supervision. As a result, the client incurred significant losses when the production system crashed, causing significant backlogs and lost production sales. What are the possible legal implications of this situation for your CPA firm?

Contemporary Auditing

11th Edition

ISBN:9781337650380

Author:KNAPP

Publisher:KNAPP

Chapter6: Professional Roles

Section6.4: Tommy O’connell, Audit Senior

Problem 3Q

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