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Dan Prowess, CEO of Seahorse Corporation, a publicly held company

Dan Prowess, CEO of Seahorse Corporation, a publicly held company, is livid over the proposed fee for this year’s annual audit. He is adamant that the company has an internal audit department that can do much of the work more cheaply than the external auditors, and they can beef up the internal audit department during the audit by adding temporary staff. He wants you to reduce the proposed audit fee and rely on the internal audit department for much of the work. How would you respond to Dan?

 

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