Auditor Should Resign

BY JOHN A. JETER

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

SPONSORED REPORT

Revenue recognition: A complex effort

Implementing the new standard requires careful judgment. Learn how to make significant accounting judgments and document them and collaborate with peers for consistent application.

TECHNOLOGY Q&A

How to create maps in Excel 2016

Microsoft Excel 2016 has two new mapping capabilities. J. Carlton Collins, CPA, demonstrates how to make masterful 2D and 3D maps in Excel 2016.

QUIZ

News quiz: Economy and health care changes top CPAs’ list

CPA decision-makers’ economic outlook and the House Republicans’ proposed tax changes as part of replacing the Patient Protection and Affordable Care Act received attention recently. See how much you know with this short quiz.