APPENDIX A

PART I (Response option: Disagree 1 2 3 4 5 Agree).

In your opinion, during the audit of a public company, a CPA should:

i. Actively search for illegal acts.

ii. Work to uncover related party transactions

iii. Evaluate whether there is 'substantial doubt' about a company's ability to continue as a viable concern.

iv. Not inform management of possible illegal acts.

v. Assure that management conveys my findings to the audit committee of the board of directors.

vi. Furnish the SEC with a copy of my report if management does not.

vii. The SEC has no right to impose monetary penalties upon CPAs if reporting requirements are not met.

viii. If my conclusions regarding illegal acts are ultimately decided to be wrong, I am protected from private litigation under the PSLA. Therefore, I will not hesitate to report any suspicious activities.

ix. Assess management characteristics, to determine if they may lead to fraudulent financial reporting.

x. Include an industry analysis to determine if industry conditions may lead to fraudulent financial reporting.

xi. Examine factors such as pressure to obtain additional capital to determine if such pressures may lead to fraudulent financial reporting.

xii. Determine if assets are susceptible to misappropriation.

xiii. Look for signs of financial stress among employees that may result in the misappropriation of assets by the employees.

xiv. Examine employee relations to discern whether the risk of asset misappropriation exists.

xv. Investigate controls used by the company to prevent or detect the theft of assets.

xvi. Determine whether any discrepancies they uncover are "intentional" or "unintentional."

xvii. Focus only on intentional errors.

xvii. Question management, to determine how they deal with fraud risk.

xix. Confirm more receivables, to be better able to detect fraud.

xx. Verify more shipments and sales of goods, to be better able to detect fraud.

xxi. Visit factories more frequently, to be better able to detect fraud. 

PART II: (Response option: Disagree 1 2 3 4 5 Agree).

i. I think that the auditing profession is moving in a more conservative direction.

ii. I agree that auditors should act as 'police' or 'detectives' when conducting an audit.

iii. Auditors are responsible to work to uncover fraud and report such findings to the appropriate authorities.

iv. If I had it to do all over again, I would still become a certified public accountant.

v. The SEC should not be able to impose monetary penalties if reporting requirements are not met.

vi. This new legislation will considerably impact the firm's effort to recruit new clients.

vii. This legislation will impact the firm's recruitment of students at colleges by significantly increasing the number of staff level personnel required.

 

PART III

Experts in the field of accounting have estimated that as a result of the new legislation, a significant amount of additional work will be

required. In your opinion, based on your clients and the level of risk on an average engagement, you will need to:

i. Confirm ________ percent of receivables.

ii. Verify ________ percent of the shipments of goods.

iii. Visit client locations ________ times during the audit.

iv. Increase audit fees by ________ percent.

 

 

PART IV

We would appreciate any additional comments (please print):

I. I would or would not choose the accounting profession today because:

 

II. The Private Securities Litigation Act effects me as an accountant by:

 

III. I feel that the new standards proposed by the AICPA are:

  

PART V

DEMOGRAPHIC DATA

What certifications do you have? (Check all that apply)

CPA CMA

CFA CISA

Other - please explain ____________________________________________________

What level of education have you completed? (Check all that apply)

Bachelors Masters

Doctorate Other - please explain_______________________________

How many years of experience do you have with your current firm? __________

With prior firms? __________

What is the size of your current firm?__________

Accounting firm:

"Big 6"

Large--more than 150 professionals

Medium--more than 25 professionals

Small--less than 25 professionals

Private industry:

Corporation

Not for profit

What is your level within the firm?

Staff Senior

Manager Partner

Other

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update 7/29/99