jduction to Assurance and Financial Statement Auditing
The turnaround team included inexperienced personnel—a retired consultant, a partner with little experience in the United States and with retail ?rms, and two recent college graduates. E&Y charged exorbitant hourly rates and charged unreasonable expenses (e.g., charges included reimbursement for a dinner for three of the consultants totaling in excess of $200). E&Y denied any wrongdoing but in April 1999 agreed to pay $185 mil- lion to settle with the injured parties. equired: Although this was not an audit engagement for E&Y, some of the al- legations against the ?rm can be framed in terms of the 10 generally accepted auditing standards. Which of the 10 GAAS was E&Y alleged to have violated? Should there be speci?c professional standards for CPAs who consult? Given that non-CPAs who consult do not have formal professional