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The case of the PPP interview

Ethics

Charles Selcer, CPA, MBA | November 2021 Footnote

Editor's note: Updated October 29, 2021

Lacy Doyly, CPA is the CFO at Pungent Patchouli Products, Inc. The assistant controller resigned and Lacy interviewed possible candidates.

During an interview, Lacy told one candidate, Ralph Malf, that she would only hire a woman, as women might better understand patchouli oil products. Ralph sued the company and Lacy for gender discrimination and was awarded damages that were upheld on all appeals.

Q:  Has Lacy committed an act discreditable under the CPA Code of Conduct?

A.   Yes. At 2.400.010, it is presumed to be an act discreditable when a court rules that a member has violated anti-discrimination laws.

Ethics Corner

21WX-2127: Ethics: Uncomfortable Conversations and Inconvenient Truths (Webinar)
Nov. 16 | 2–4 p.m. | 2 Ethics

21WX-2224: Accountants and Malpractice: Can We Get Sued for This? (Webinar)
Nov. 26 | 11 a.m.–1 p.m. | 2 Ethics

21WA-3450: Business Ethics: Cases from the Real World (Webinar)
Nov. 30 | 7–10:40 a.m. | 4 Ethics

Visit www.mncpa.org/catalog to find more ethics CPE programs.