AM I ETHICAL?
Leslie, Wesley, and Presley are siblings who all work for the same CPA firm. During the current year, they all performed accounting services for their firm's biggest client, Campanella Company.
All three siblings recently decided to leave public accounting and, coincidentally, each has applied to work for Campanella. Leslie, who has provided tax compliance services to Campanella, applied to work in Campanella's Tax Compliance Department. Wesley, who was a junior staff member on the Campanella audit engagement, hopes to work as a production cost accountant. Finally, older sister Presley was a senior manager on the Campanella audit and is currently negotiating to become Campanella's Chief Financial Officer.
All three worry that it might “look bad” if they switch roles from providing outside services to Campanella to being employed there. They have asked you to advise them about their professional responsibilities.
How much time does each sibling have to wait before commencing to work at Campanella?
- All three must wait one year
- Leslie does not have to wait because she did not work on the client's audit engagement, but the other two must wait one year
- Leslie and Wesley do not have to wait, but Presley has to wait one year because she contemplates becoming a key company officer
- None must wait because their new positions will not directly involve the processing or preparation of financial statements ...