You know who could use a really good PR person? Arizona. Nowadays, every time I read about Arizona, it’s not complimentary. Whether it is a piece about the “right-to-refuse-service” bill, immigration issues or the sheriff of Maricopa County, the articles tend to speak of controversy and a lot of angry people. You would think it was a terrible place to live in or visit, unless you are going to watch the Arizona Wildcats play basketball.
Fortunately for me, my mother in law lives in Tucson, Arizona, and despite the less than flattering news about Arizona, I go out to visit her on occasion. I love it every time I go there. Granted, part of it is that I am solar powered and the sunny warmth of Arizona recharges me. However, there is so much more to that. I honestly could spend every day hanging out in my mother in law’s backyard, chatting – you can’t help but adore a woman who loves art, sport and having fun – but wait, there’s more! I get up in the morning and start my day with an incredibly scenic run and I often end it with a lovely walk in some new and beautiful place. It’s not just the scenery; I meet interesting and interested people, I meet kind and polite people, I just come across some great characters while I am in Arizona. I go there and I think, wow, someone needs to really work on the word on Arizona that gets out.
It got me thinking about my days in audit and when I go on due diligence assignments. When I worked in audit, before assignments, we would often talk about what kind of office our client would decide to put us in. Would the office have a window and would it even be clean? Would they drag their feet, complaining about how difficult we were, in response to our requests? Would they treat us as though we were wasting their time and doing unnecessary, and expensive, work? Often I wondered why clients treated us as though we were Typhoid Marys, bringing a horrible plague to the company.
When a CPA comes in to a firm, whether they are performing an audit or a forensic investigation, they are coming in as a trusted professional to give outsiders a level of assurance about the financial state of the company. If you have a business and tell your mother how well your business is doing, I am sure that she will believe you and perhaps even brag about you to her friends. A random stranger on the street may not be so willing to take you at your word. In the hierarchy of opinions, the least trusted opinion regarding the state of a business’s financials is the opinion of the business owners and the most trusted is that of an independent third party. This is because you, as the business owner, have a vested interest in showing yourself in the best possible light, they are more likely to trust a third party over you, and the word of an independent third party carries a lot of weight. Independence means that the third party has no financial interest in the company, either as an owner or as a customer. The interest of this third party is only in the facts.
CPAs conducting an audit or forensic investigation are held up to the very high standards of the profession. Knowledge of these standards factors greatly into the level of confidence that users have in the results produced by CPAs. The CPA Code of Conduct requires objectivity, independence and integrity from CPAs and it is for these reasons that CPAs are trusted professionals.
CPAs are obligated to serve the public interest, honor the public trust, and demonstrate commitment to professionalism. The goal of CPAs is not to destroy your business or to embarrass you by finding misstatement or fraud. They are objectively carrying out their assignment, which may be to give assurance that your financial statements are fairly stated or to investigate suspected fraud within a business. This means that even if CPAs find misconduct, errors or misrepresentation, they can point it out to the company’s management and even work with management to take adequate steps to resolve matters.
So, when independent CPAs come into your firm to conduct an audit or forensic investigation, don’t see them as the enemy. Even if you give them the airless, cramped office that qualifies as a closet in a Texas apartment, at least get the cleaning service to dust it a little.