Holmes Institute HI6026 Memo 01

Holmes Institute HI6026 Memo 01 – T02, 2015
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.
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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