Contemporary Auditing 10th Edition by Michael Knapp

Exercise 14

When a dispute arises between an audit client and its auditor regarding the proper accounting treatment for a transaction or other item, the audit client will sometimes retain another accounting firm to issue a SAS No. 50 report on the proper accounting treatment for the given item. Identify the potential ethical dilemmas that may result from allowing accounting firms to issue SAS No. 50 reports to non-audit clients.