USA Conflicts of Interest


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Hello.

I have a question regarding conflicts of interest. The company I work for is run mainly by a family. It is currently owned by “grandpa and grandpa” and will eventually be owned by their kids. Their kids are actively involved in the running of the company. One of the kids is a manager over the operations of the business (generating revenue). This kid also has a kid (grandchild of the owners) who is going to be a CPA. This grandchild just started working for the firm that signs off on the company’s financial statements and prepares the taxes for grandma and grandpa (it’s an S-Corporation). My question is this: At what point is there a conflict of interest? In other words, is the company still okay using that CPA firm? Could the grandchild ever be okay to sign off on the company’s accounting work or would that violate any professional code of conduct for the CPA and/or the CPA firm?

Thank you for any help.

BJ
 
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Drmdcpa

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There may be an independence issue. But it can be avoided provided the offspring does not work on the engagement.
 
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