If You Need Love, Get a Puppy Essay

7062 Words May 8th, 2014 29 Pages
ISSUES IN ACCOUNTING EDUCATION Vol. 24, No. 2 May 2009 pp. 237–252

If You Need Love, Get a Puppy: A Case Study on Professional Skepticism and Auditor Independence
Robert L. Braun and H. Lynn Stallworth
ABSTRACT: The purpose of this teaching case is to expand students’ understanding of the concepts of professional skepticism and independence. The case is based on an actual incident and illustrates the exercise of professional skepticism by a staff auditor who finds himself in the uncomfortable situation of accusing a friend of fraud. The case demonstrates the difficult personal and professional choices that auditors must sometimes make. In analyzing the case, students consider auditor independence rules, as well as the concepts of
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It had taken several unsuccessful attempts, but he had finally passed the CPA exam. After spending a year with a large regional firm, he had switched jobs four months ago to decrease his travel and overtime as the baby’s due date approached. He seemed to be on his way. Life was good, or was it just the lack of sleep dulling his senses? This morning, his commute would be a short one. He was auditing the Town of Rosedale, a bedroom community northeast of the city and just five miles from the town where

Robert L. Braun is an Associate Professor at Southeastern Louisiana University, and H. Lynn Stallworth is an Associate Professor at Appalachian State University. 237


Braun and Stallworth

he had lived since he was four. This was his first engagement on his own at DB&H. Of course, his work would be reviewed, but he was going to be the only one at the offices of the Town of Rosedale. DB&H had been doing the audit for the last four years and had never had any problems. Of course, controls could be tighter; they made recommendations for the improvement of handling cash receipts and disbursements every year, most of which were disregarded. But the relationship with the mayor and the financial staff was good, and Vince Huston, the partner that he had worked

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