Do You Know What Your Partners are Doing?
|
Source: Partner’s Report—the Monthly Update for CPA Firm Owners The KPMG criminal tax case, familiar to most CPAs by now and which cost the firm more than $450 million, may be an isolated Big Four problem, but it also offers a lesson to small firms. Some observers believe the indicted KPMG partners acted without the knowledge of the partnership. Is it possible that some of your partners could unknowingly violate laws without your knowledge? Firms of all sizes should schedule regular partner meetings to discuss legal and ethical issues. Some firms have created advisory boards with outside members such as clients, lawyers, bankers, and others. These boards may or may not have authority, and their effectiveness may be questionable in light of the well known failures of boards of directors of Enron, WorldCom, and others. From Partner’s Report—the Monthly Update for CPA Firm Owners, October 2005, p. 1. For subscription information contact Institute of Management & Administration, Inc., |
|
|