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Question: today a very high percentage of publidy traded companies are...

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Today, a very high percentage of publidy traded companies are audited by only four very large public accounting firms. These firms also do a high percentage of the consulting that is done for publidy traded companies. How does this fact complicate the dedision regarding whether CPAs should be allowed to invest in companies audited by their firm? Suppose IBM audit contract. you were a CPA and you had Invested in 1BM when 18M was not one of your firms dlients, Two years later, after IBMs stock price had fallen considerably, your firm won the You will be involved in working with the IBM audit. You know that your firms rules require that you sell your shares immediately. If you do sell immediately, you will sustain a large loss. Do you think this is fair? What would you do? 1033 AM 2 5 6 8
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