SOLUTION: I have some questions

ACG6685 Florida Atlantic University PwC India AFF & PCAOB Announcement HW

read post and answerRegarding the Tata case, it was a very unfortunate thing that AFF did not support its partner. Although this may be an unpopular opinion, I think this happens more frequent than not. Accounting firms depend on their good-standing with clients in order to continue making their revenue, and although unethical, I believe this is what drives most of the day to day decisions. Although firms do their best to maintain fully independent, I think it’s undeniable that clients do have some power, or at least influence, over their larger decisions. Having professional experience in both a public accounting firm, and working at a publicly-traded company, I have seen first-hand examples where auditors have prioritized their client relationship over their independence. Granted, all examples were very minor situations, but it was able to provide me enough of a sneak peek of how quickly and easily matters can get out of hand when you do not want to be the engagement team that loses a client. I think regarding this case, the competitive environment was a major influence in the fraud. A large company that could provide millions of fees is always going to be a sought out customer by accounting firms, and firms know that. No matter how good their service is, public accounting firms are well aware that they are easily replaceable, and thus are constantly competing with other firms to continue retaining their clients. This competitive nature in the industry is what leads firms to end up like AFF and PwC India. sources to use**

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