Plain Truth Adverting employs KPR, a large accounting firm, to audit its books each year.

Plain Truth Adverting employs KPR, a large accounting firm, to audit its books each year. This involves considerable expense for the advertising firm, since its sales account managers are very independent and maintain separate record keeping systems. Should the CEO at Plain Truth cancel the audit and rely on a brief year-end summary from each sales account manager? Why?

QUESTION:Plain Truth Adverting employs KPR, a large accounting firm, to audit its books each year. Thisinvolves considerable expense for the advertising firm, since its sales account managers are…

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