Question

1. Keeping in mind that no compensation, nor accounting services, were ever received or provided, has Sam stepped “out of bounds”?
2. What is your advice for Sam?
3. What is your advice for Ruby?
4. Given the alleged disclosure by Jimmy’s accountant, has he crossed any boundaries? If so, does Sam have to take any actions and what would these actions be?

Dear John:
I really appreciate your willingness to give me your opinion as a fellow professional accountant on what I should do, and on what I should advise the minority owner to do. Given that I was asked to help out Ruby, a family friend, and have found myself in the following situation, your advice is welcomed. Please take into account that I am not (and have not been) retained, nor am I being compensated in any manner related to the situation; I have not been providing accounting services in any shape or form related to the situation; and I have ensured that Ruby did seek out accounting advice from another party as events unfolded.



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  • CreatedOctober 28, 2014
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