STANDING UP FOR OUR PRINCIPLES

摘要

As a very young auditor, well before the advent of audit committees, I accompanied a senior partner to meet a difficult client. There was an issue on the table about the presentation of a transaction in the financial statements.rnA gung ho argument ensued between the CEO and the partner, who made it clear that, as far as he was concerned, there was only one acceptable accounting treatment and, unless the client used it, he would refuse to sign the accounts. In response, the CEO said he could always find another firm of auditors, at which point the partner stood up, said 'Yes you could,' and walked out of the meeting. He was half way down the corridor when the CEO caught up with him and said he hadn't meant it. In effect, he'd just admitted he'd lost the argument.