You Have Been Hired to Audit JarCakes, Inc

question 106

Essay

You have been hired to audit JarCakes, Inc., a small privately held local bakery that specializes in jarred cupcakes.As the bakery is small, they have requested that you do several other tasks for them.The bakery owner, Jared Sampson, is frequently out of town at conventions.As such, Jared has requested that you sign checks for him in emergency situations when he is out of town and payments must be made.In addition, when he is away, he has requested that the payroll clerk provide you with approved timecards to use in generating payroll checks.Jared's wife, Rita, is the accountant for JarCakes.She frequently attends conventions with her husband.Accordingly, Jared has also asked if it would be possible for you to post journal entries in the accounting.Rita would send you all information for any journal entries that are required, including the appropriate account classification.Additionally, Jared would like a new accounting information system installed.He considers you the expert, so he would like you to take full ownership of that project.As JarCakes is small and he has no IT staff, Jared would also like you to supervise his personnel in the daily operation of the new accounting information system.Finally, as Jared's expertise is in baking, and not in business, he would like you to serve in an investment advisory role for him, by recommending the allocation of funds that he should invest in various asset classes.Prepare a response to Jared, outlining which of his requests are allowed non-attest services and which of his requests are not allowed under the Independence rules.

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