We include solutions to each of the case requirements, and a grading rubric is provided in Appendix A. The rubric includes examples of possible student responses that would warrant varying degrees of credit for each of the case requirements. Therefore, it may be helpful to provide the rubric to the students before they begin their work on the case. The rubric is based on a maximum possible 120 points but can be adjusted to best suit the needs of the instructor.
Three of the key audit deficiencies in Loxon’s performance of the GLS audit include: Failure to Establish Adequate Client Acceptance Policies, Failure to Inquire of the Predecessor Auditor, and Failure to Adequately Plan the Audit.
PCAOB Quality Control Standard 20.14 requires auditors to establish policies and procedures to follow as they determine whether to accept a new client. Such policies should include an investigation into the client and...
