An Oregon CPA Provides Management Advisory Services to a Large

question 7

Essay

An Oregon CPA provides management advisory services to a large public utility that provides natural gas throughout Oregon and is the only supplier of electricity to residential users in Oregon.The CPA has been asked to prepare a request for a utility rate increase that will be submitted to state regulators for their approval.
a. Does the CPA have a conflict of interest?
b. Would you expect this conflict of interest to impair the CPA's objectivity?
c. Does the CPA have a duty to disclose this conflict of interest?

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Definitions:

Manufacturing Sector

The segment of an economy that is involved in the production of goods using labor, machinery, and tools.

Developing Countries

Refers to nations with lower levels of income, industrialization, and often a lower Human Development Index compared to developed countries.

Industrial Market Countries

Nations with economies mainly based on industrial production and services, with advanced technological infrastructure.