Department/School

Accounting

Date of this version

12-2014

Document Type

Article

Keywords

Audit Assurance Standards

Abstract

This instructional case presents a realistic situation in which there

is a request for professional services by a CPA firm. Two towns,

Weston and Easton, are involved in a dispute over the costs of a

shared wastewater treatment facility. The mayor of Easton believes

his town has paid more than its agreed-upon share of the

facility’s operating costs over the years. The mayor of Easton has

approached a local CPA firm to “audit” the amount Easton has paid

towards operation of the plant and determine the amount of the

overpayment. Students are asked (1) to determine whether an audit

can be performed, (2) if an audit cannot be performed, to decide

what type of service is appropriate, (3) to research the applicable

professional standards, (4) to assess whether the applicable standards

Published in

Journal of Accounting Education

Citation/Other Information

32 (4) 49-57

Included in

Accounting Commons

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