Auditor Should Resign


The Padding That Hurts ” ( JofA , Feb.03, page 67) was an excellent discussion of the reactions of various parties to fraud. However, I believe an independent auditor should resign from the audit of any company such as the one described. The external auditor knew a major officer was dishonest but not to what extent. He knew the CEO was not alarmed at the executive’s dishonesty and had even threatened to replace the auditor for bringing a fraud to his attention. The auditor also knew most of the members of the audit committee “were chagrined that they had to involve themselves in what they saw as such an insignificant matter.”

In my opinion the article should have discussed the possibility of the external auditor’s resigning and also mentioned that any audit committee members who react as did those described in the article need to be better informed of their responsibilities.

John A. Jeter, CPA
Omaha, Nebraska


Year-end tax planning and what’s new for 2016

Practitioners need to consider several tax planning opportunities to review with their clients before the end of the year. This report offers strategies for individuals and businesses, as well as recent federal tax law changes affecting this year’s tax returns.


News quiz: Retirement planning, tax practice, and fraud risk

Recent reports focused on a survey that gauges the worries about retirement among CPA financial planners’ clients, a suit that affects tax practitioners, and a guide that offers advice on fraud risk. See how much you know with this short quiz.


Bolster your data defenses

As you weather the dog days of summer, it’s a good time to make sure your cybersecurity structure can stand up to the heat of external and internal threats. Here are six steps to help shore up your systems.