Question

Part A

Billy Tushoes recently received an offer to join the accounting firm of Tick and Check LLP. Billy would prefer to work for Foot and Balance LLP but has not received an offer from the firm the day before he must decide whether to accept the position at Tick and Check. Billy has a friend at Foot and Balance and is thinking about calling her to see if she can find out whether an offer is forthcoming.

Part B

Assume that Billy calls his friend at Foot and Balance and she explains the delay is due to the recent merger of Vouch and Trace LLP with Foot and Balance. She tells Billy that the offer should be forthcoming. However, Billy gets nervous about the situation and decides to accept the offer of Tick and Check. A week later, he receives a phone call from the partner at Foot and Balance who had promised to contact him about the firm’s offer. Billy is offered a position at Foot and Balance at the same salary as Tick and Check. He has one week to decide whether to accept that offer. Billy is not sure what to do. On one hand, he knows it’s wrong to accept an offer and then renege on it. On the other hand, Billy hasn’t signed a contract with Tick and Check, and the offer with Foot and Balance is his clear preference because he has many friends at that firm.

Required information

Suppose Billy Tushoes rejects the Tick and Check to take the Foot and Balance offer. Three months later at a local CPA chapter meeting, one of the partners at Tick and Check informs his counterpart, a partner at Foot and Balance, of his disappointment in Billy reneging on his promise at the last minute. Following the AICPA Code of Conduct, Foot and Balance might well do what?

A. Ignore the incident and be glad to have Billy at FB rather than at the competition.

B. Prepare a memo for Billy’s file recounting the situation.

C. Call Billy in and ask why he acted in such a manner.

D. Inform Billy he has 90 days to find a job somewhere else because the firm no longer trusts his integrity.

Answer 1

A. After one of the Partner at Foot and Balance comes to know about billy act of reneging his promise to Tick and check he cannot ignore , because Integrity is one of the most important code of conduct as per AICPA, the similar situation can happen with FOOT & Balance as well,in future he might reject the offer at Foot and balance and sign an offer at any other firm which may offer him an higher grade. He should have been responsible enough to serve at Tick and check

B, To :Billy

From: Foot and Balance

Date: 5th August 2019

Subject: Reneging of Promise to Tick and check

Due to violation of AICPA code of conduct we regret to inform you that your offer we offered a week back will be taken back due to integrity issues from your end. Although you had enthusiastically joined our firm, we are adhering to code of conduct which results in this decision, Any further query please reach to us.

c. Check with Billy and offered him a memo and given 90 days time period , since firm cant believe his acts , they doubt if he will renege the promises here also