The case of the rep letter rap
Ethics
Charles Selcer, CPA, MBA | February/March 2021 Footnote
Editor's note: Updated February 1, 2021
In the latest episode of Law & Order — GAAP Departure, Helmut Chynztrap, CPA is asked by the outside CPA firm of the SVU division to sign a representation letter before they issue an agreed-upon procedure report. The report is overdue, and Ice-T and Mariska Hargitay’s characters both tell Helmut, “Just sign the darned thing.” The letter includes a representation that all of SVU’s files were made available. This is not true, and Helmut knows this. But Helmut signs it; his boss told him to.
Q. Is this unethical?
A. Yes. The AICPA Code of Professional Conduct 2.130.030 states that a member in business cannot knowingly make representations
