Holmes Institute HI6026 Memo 01

Holmes Institute HI6026 Memo 01 – T02, 2015
Background:
Mr. Dewey, a Senior Partner of the CPA firm Dewey, Cheatem, & Howe (DCH), after noting that many of the large businesses who are asking for substantial discounts in their audit fees often refer to the many positivistaccounting theorists and right-wing economists who recommend that general purpose financial statements (GPFS) be deregulated because market forces can control the quality of GPFS.
Required:
Mr Tu Dewey wants you to research this vital issue and, after referring to a sampling of the key associated literature, to provide a diplomatic response that DCH can use to discourage its clients from demanding discounts on the basis of their expectation of deregulation of GPFS. NB: the response needs to be very polite and should not discourage DCH clients from being clients.
Please address your answer to Mr Tu Dewey, in a ½ to 1½ page memo.
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