Question
Brent Shaw, CPA, is the auditor of Cafe Eccel. A couple of weeks ago, Cafe Eccel's management expressed an intention to commence litigation against Brent,
Brent Shaw, CPA, is the auditor of Cafe Eccel. A couple of weeks ago, Cafe Eccel's management expressed an intention to commence litigation against Brent, alleging he was negligent in last year's audit. Brent believes there is a strong possibility that management will proceed with the litigation. However, Cafe Eccel has not fired Brent as its auditor, and he is now working on the current year's audit. Determine whether Rule 101 of the AICPA's Code of Professional Conduct has been violated. Briefly explain why the situation violates or does not violate the code.
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