Following is a transcript of a question and answer highlighting frequent inquiries sent to the MACPA Professional Ethics Task Force. Responses to the inquiries have been tailored to specific questions presented and may not consider all of the unique circumstances that are part of an ethical inquiry. Attempt your own answer before reading the “unofficial” opinion of the Task Force.


Q. I am a CPA in industry. I work part-time for a non-CPA accounting firm. Several of their clients own party stores or restaurants. Their so-called books are terrible, skimming is rampant, and they pay employees "under the table.” I prepare payroll tax returns, financial statements and some partnership tax returns. I don't sign anything so I know I am not in trouble, but I feel uncomfortable. What should I do?

A. All CPAs must adhere to the Code of Professional Conduct. This includes CPAs in industry and CPAs working for non-CPA firms, as well as for CPAs in public accounting. You cannot knowingly prepare false or misleading documents – tax returns or financial statements. It does not matter who actually signs the returns or reports; as a CPA you are always responsible for your conduct. Talk to the accountant. If the accountant is unwilling to enforce corrective measures, you can either refuse to work on those clients or you can quit.

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