>>5461557
>>5461557
Maybe - but ethically, CPA's are not allowed to take irregularities outside the client relationship without the client permission (some exceptions)….they have 3 choices…resign/separate from the client…or risk losing their CPA…or ignore the irregularity and play along with the client (compromise independence and objectivity and in the end risk going to jail)…
"The member is required to discuss the illegal or suspected illegal conduct with the appropriate level of client management or those charged with governance of the client to which the member has access. If the member determines that the illegal or suspected illegal conduct is significant, and client management or those charged with governance of the client refuse to take appropriate steps to address the matter, the member must consider whether withdrawal from the engagement or client relationship is necessary, or whether he or she needs to take further, more serious action."
Didn't pull the full citation down…been CPA for over 30 years….an ethical CPA will resign/distance the relationship. An idiot will compromise and face prison (think Enron)…the CPA's always get hit in major frauds they continued working on and should have discovered in the normal course of their work…when it is a government type auditor (state, local) it becomes more interesting…they have no where to go but out if they value their ethics and CPA…
https://www.thetaxadviser.com/issues/2018/feb/ethics-rule-suspected-illegal-acts-clients.html