There are numerous pieces of the puzzle to analyze when trying to
determine whether or not to accept a new client engagement. I feel
the most important step in practicing due diligence is to take the time
to thoroughly evaluate those involved, their environment, and
history. Doing so will help to protect yourself, the firm and the public.
If I were considering taking on this lawyer as a new client, I would
check their level of integrity by talking to current employees, past
CPA firms, as well as collecting feedback from prior/current
customers of the potential client. This would help to give an unbiased
and honest feel for what the client is about. Taking a look at this
factor alone I would tread lightly with Attorney Joe due to his history
of not practicing what he is preaching or making good on his word.
Seems he is in it just for his own benefit.
From here I would definitely speak to prior CPA firms for their
opinion/experiences with the client. Lastly if I didn't find I could be of
help but was still a little uneasy you should always write of a contract
outlining the engagement which is a legally binding document.
In conclusion, due to the numerous red flags present right from the
start I would decline the engagement request for an expert witness.
References:
AICPA. (2016, Dec.15). Code of Professional Conduct and Bylaws.
https://us.aihttps://us.aicpa.org/content/dam/aicpa/research/stand
ards/codeofconduct/downloadabledocuments/2014december15con
tentasof2016august31codeofconduct.pdf
Rufus, R., Miller, L., & Hahn, W. (2014). Forensic accounting. Upper
Saddle River, NJ: Pearson Education.
