Problem

Some of the members of CUC’s financial management team were former auditors for Ernst&...

Some of the members of CUC’s financial management team were former auditors for Ernst&Young, LLP. (a) Why would a company want to hire a member of its external audit team? (b) If the client has hired former auditors, how might this affect the independence of the existing external auditors?

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Solutions For Problems in Chapter 4.3