MGT223H5 Quiz: Inclass Case # 1
Document Summary
Gail brewer, a public accountant, has been the partner in charge of the merkle manufacturing company (mmc), a client listed on the alberta stock exchange, for six years. Mmc has had excellent growth and profits in the past decade, primarily as a result of the excellent leadership provided by sylvia merkle and other competent executives. Brewer has always enjoyed a close relationship with the company and prides herself on having made several constructive comments over the years that have aided in the success of the firm. Several times in the past few years brewer"s public accounting firm has considered rotating a different audit team on the engagement, but this has been strongly resisted by both brewer and sylvia. For the first few years of the audit, internal control was inadequate and the accounting personnel had inadequate qualifications for their responsibilities. Extensive audit evidence was required during the audit, and numerous adjusting entries were necessary.
