Read the information about Merry-Go-Round and respond to the questions listed below. Remember to reference your sources in APA-format.
1. Although this was not an audit engagement for E&Y, some of the allegations against the firm can be framed in terms of the Principles Underlying an Audit Conducted in Accordance with Generally Accepted Auditing Standards. Which of the Principles was E&Y alleged to have violated?
2. Should there be specific professional standards for CPAs who consult? Given that non-CPAs who consult do not have formal professional standards, describe the advantages and disadvantages that result from CPAs being subject to such standards.
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