The case of the strangled independence
Ethics
Charles Selcer, CPA, MBA | August/September 2026 Footnote
Editor's note: Updated July 27, 2026
Casey Strangle, CPA is an auditor with a public accounting firm. His audit client is a manufacturer of fireplace accouterments, Mickey’s Mantles. The company needs a new CFO as the prior one left in a huff in an Uber. Possible candidates have been reduced to three. Mickey, the owner, asked Casey to check their references.
Q. Can Casey do the reference checks and maintain independence?
A. No. Under a revised rule effective Jan. 1, 2026, reference checks for key positions impair independence if done by your auditor (See 1.295.135.03).
