The case of the anti-waxer
Ethics
Charles Selcer, CPA, MBA | September 2021 Footnote
Editor's note: Updated August 30, 2021
Stu Pendisguy, CPA is a partner at Click & Clack CPAs. Recently, he had a disquieting phone call with his client Charlie Dinges, president of Anti-Waxers, Inc., an audit client that polishes wood floors without the use of waxes. Charlie, being mercurial, threatened to sue Click & Clack regarding some issues in the 2020 audit. Notwithstanding Charlie’s berating, Stu didn’t think much of the threat until he received a certified letter from Charlie’s attorney indicating they were preparing to serve the firm with a lawsuit.
Q: Is Click & Clack still independent?
A. The lawyer’s letter is a clear expression of Anti-Waxer’s intent to sue the CPA firm, and Click & Clack should conclude that a lawsuit is probable. Accordingly, independence is impaired until a final resolution of the alleged matters is reached. (See 1.290.010.06 and 1.290.010.14)
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