The case of another way to skin Dekaat
Ethics
Charles Selcer, CPA, MBA | June/July 2021 Footnote
Editor's note: Updated May 27, 2021
The CPA firm Hustle, Muscle & Tussle has offices in Frostbite Falls, Minnesota; Backbite Falls, Minnesota; and Cheesebite Creek, Wisconsin. The Backbite Falls office has a chance to propose on an audit of a large company in their community. However, a partner in that office, Fritz Dekaat, is the brother of the CFO of the audit prospect. Management of the CPA firm thinks if they move Fritz to the Cheesebite Creek office, they can propose on the audit and be independent if appointed auditors.
Q. Is this true?
A. Yes, tentatively. At the May PEEC meeting, the committee considered issuing a nonauthoritative Q&A related to this issue. If these offices are really separate, serving clients for their locality and Fritz isn’t otherwise a covered member regarding the proposed new client, i.e., in a position to supervise this engagement, the move would do the trick.
Look for the PEEC’s clarification soon if this idea carried the day at its May meeting.
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