Most clients in small CPA firms are small privately held companies. From what I had seen throughout my years in small CPA firms, these clients often have very shady and questionable accounting practice. It's always up to the small firms' partners to correct their clients' questionable financial statements.
Today, I was fired by a small privately held company and was removed from the review engagement. I am actually happy that the client requested my firm to remove me from the engagement. It's so hard for me to get satisfactory answers during my inquiry that, I can no longer perform the review.
If this is my client and this is my firm, I will withdraw the review engagement, or at least step it down to compilation only. The reason that this client needs a review is their need to renew their millions of dollars line of credit from the bank. They had already violated a few loan covenants in 2010 and also in 2011. They got a waiver from the bank in 2010 and also 2011. Their only cash inflow is really from this line of credit, which they use to finance their operating and also investing activities. They have been in business for many years. The bank is waiting for the reviewed financial statements from us for consideration of further extension of the line of credit.
So, during my inquiry, I asked some questions, but the very first question I asked got a very angry response from the client and they refused to even answer. The client's CFO and controller just snapped. The subsequent questions only got them more upset and I got nothing back from them either. So they called in the firm's partner and demanded him to remove me from the engagement in front of everybody.
Have you ever been fired by a client when you were working for a small CPA firm or a big 4? If so, please let me know I'm not the only CPA who experienced this......
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