Whether to hire the controller of a client

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Reference no: EM131380007

Assume that the CPA firm of Giants & Jets LLP audits Knickerbocker Systems Inc. (the Knicks). The controller of the Knicks happens to be a tax expert. During the current tax season, Giants & Jets gets far behind in processing tax returns for wealthy clients.

It does not want to approach clients and ask permission to file for an extension to the April 15 deadline. One alternative is for the firm to hire the Knicks controller as a consultant just for the tax season.

Discuss the ethical issues that should be considered by Giants & Jets before deciding whether to hire the controller of a client, including possible threats to independence.

Reference no: EM131380007

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