The case of the Crappy chappie
Ethics
Charles Selcer, CPA, MBA | August/September 2023 Footnote
Editor's note: Updated August 1, 2023
Tim Bucktoo, CPA, is the audit manager assigned by his firm, Hopp Tooit & Co., to the audit of Crappy Scrappy, an environmental remediation company. While in the field, the owner of Crappy Scrappy approached Tim and offered him the position of VP of finance at a substantial raise. Tim told the owner he would mull it over.
Q. Is Hopp Tooit’s independence impacted?
A. Yes. To avoid impairment, Tim would have had to: 1. Report the offer to his firm. 2. Remove himself from the engagement. See ET 1.279.010.
