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CPA advises counsel of a problem

The CPA is advising counsel of a problem, and telling him/her that additional steps will be taken by the CPA. Those steps would include meeting with the board of directors of the firm, and advising them of the fraud. Can the CPA stay clean by doing that?

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If I understand your statements correctly, it appears that the CPA is discussing a possible 'in-house' fraud within a client's organization with the client's attorney.

We need to step back and remind ourselves about who hired the CPA initially. It wasn't the attorney (in most normal circumstance). Rather it was the Board of Directors of the corporation. Even if ...

Solution Summary

The solution explains whether the CPA's action in dealing with a potential fraud is appropriate in the circumstances.