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You recently attended your five- year college reunion. At the main reception, you encountered an old friend, Lee Beagle, who recently graduated from law school and is now practicing with a large law firm in town. When you told him that you are a CPA and employed by a regional CPA firm, he made the following statement: “You know, if the securities acts had not been passed by Congress in the 1930s, no one would be interested in having an audit performed.” Required: Draft a memo that highlights your thoughts about Lee’s statement that audits only take place because they are required by law.
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