[Anonymous]

So, I’m working on this first year audit at a start up and they have been looking for a Controller and Accounting Manager for months before we started the audit. When we went to lunch with the head of the Finance department, she practically begged us to reach out to people we knew that were interested in transitioning into private. I really like the client and I know I could bring a lot of value to them. I’m about to be promoted to senior and am personally at a place where leaving public would be better as I start family planning, but how do I express interest without breaking independence rules? Can I express interest without breaking independence rules?

Looking at Independence standard No. 3, it looks like most of the concern for independence lies with the public accounting firm I’d be resigning from. Obviously, I cannot let the fact that I am interested impact my professional skepticism and whatnot.

I’m more concerned with how to approach breaching the topic with the client. I could reach out to the main client contact (Assistant Controller) and see what she says. But how?? I’m sure someone has had this experience already. Any advice would be greatly appreciated.

[M123]

First thing I'd look at is what the policy of your employer is regarding that. There's not much they can do to prevent but it would be honorable to stay within what you agreed to as an employee.

Independence is what you are right now. If you gain employment with the client you are not independent anymore. If you invest in them, you are not independent. If you're buddies with someone over there and don't exert managing influence, or you are interested in a job, you are indep. (someone correct me if I'm wrong as I'm still awaiting the August results!)

The best bet is to let it come from them. Arrange some time with the hiring manager if you have a relationship where that wouldn't be out of line – have coffee, have lunch, whatever. Worst case, even a casual exchange in passing is ok but not ideal. The conversation starts with “I noticed you have this opening – I may know some people, what are the most important qualities”. Eventually – they'll either offer up that you should apply or at least give you an opening to say you're interested.

[Substantive Testing]

Nothing can stop you from applying for your client's job opening. The breach of independence should be addressed by your partner and not you, and your partner might even consider retesting your workpapers. But once you apply to your clients position, and your partner finds out, then he has to mitigate the independence concern IMMEDIATELY by pulling you out of the engagement and reevaluating the work you have performed. If your partner is a bad-tempered one, you might not be welcome to any of his/her engagements anymore. Also from your post, I noticed that you are currently an associate/staff auditor, and your client is looking for a manager/controller? I am not sure how that is going to turn out, but if you do not like your firm and like this client too much, you might as well just try it by asking the head of finance department for 10 minutes of her time for non engagement matters and then tell her that you have considered what was discussed previously during lunch and your interest on the open position.

[Anonymous]

According to the job descriptions, the Accounting Manager position only requires 3 years of experience. The Controller position is a stretch. They are looking for 7-10 years experience in public or corporate accounting experience.

[Author]

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