Holding Accountants Accountable

CHAPTER 5D – Determining the Outcome Before the Work

Accounting Humor

Q – What do actuaries do to liven up their parties?

A – They invite an accountant.

THIS CHAPTER PROVIDES A detailed discussion on predication, professional skepticism, objectivity, bias, and due professional care.

INTRODUCTION

Have you ever watched a thriller, and thought, “I know how this will end,” as you guess your way to the climax? I do not have much time for movies, but growing up in Louisiana, I often thought of that same expression when someone boasted, “Hold my beer and watch this!” I knew exactly what to expect. I simply prayed they would not get anything on me or drag me into the disaster ahead.

In taking on an assignment, we can often fall into the trap of confirming our expectations, rather than applying an objective, healthy dose of professional skepticism. Do you expect to find fraud? Or are you certain that fraud does not exist? Are there damages in this breach-of-contract matter, or have you already determined there are no valid claims?

My first assignment with the Louisiana Legislative Auditor's Office (LLA) was in Lake Providence, Louisiana. The sheriff, Dale Rinicker, was accused of receiving bribes and kickbacks. I was given that assignment because the town was less than an hour from the farm on which I was born and raised. The rationalization was that I looked like and talked like ...