CHAPTER 1 -CASELET

COMMENT UPON EACH OF THE FOLLOWING STATEMENTS YOU HEARD IN A CONVERSATION

BETWEEN TWO NEWLY HIRED STAFF AUDITORS.

STAFF AUDITOR 1 - Of course, I am qualified to be assigned to this engagement. I have an accounting

degree fom a top university and with honors when I graduated. I know some of the accounting rules
have changed since I graduated, but I will be able to figure that out as we g through the audit.

STAFF AUDITOR 2 - It does not really matter what others think… I am completely independent of Chiva
Industries and should be a member of the audit team. While I own sme stock, it is a small amount and
Iam holding it for a long term, anyway.