18. Duties of auditors serving in capacity as wit auditor is sometimes a witness in court in behalf of a client. Fortunate is the client who suc ceeds in obtaining the services of an auditor who is also acquainted with the law of evidence. He will aid his client in countless ways in the preparation of his case, by cooperating with the attorney. He may also prepare questions to be asked by the attorney for the client on the direct examination. In fact, unless the attorney himself has an excellent working knowl edge of accounts, it would be well for him to be gov erned by the auditor in this respect. On many oc casions, attorneys have been known to hopelessly muddle the case of a client by failing to ask the proper questions on the direct examination which would enable the auditor to bring out facts support ing the contentions of his client.
The auditor, however, occupies a different relation from the attorney's client in that he must always take the positiori that he is an impartial advocate of truth. While the auditor is not, of course, bound to disclose the facts prejudicial to his client, yet if he is asked a direct question, and the attorney for the client has his objections to the question overruled, the auditor must disclose the whole truth and answer the ques tion.
Unfortunately, all auditors are not agreed upon the question of ethics involved here, and we some times have the unfortunate example of two leading firms proving diametrically opposite results from the same set of facts. There may, it is true, be occasions when the wording of an agreement, or the interpre tation of facts, can be honestly viewed from two angles. There are, on the other hand, cases that are
clear beyond all shadow of doubt, and in these cases, professional accountants employed both by the client and his opponents should agree. For example, a cer tain well-known firm of accountants was once em ployed by a legislative committee to make an inves tigation for the purpose of proving one thing. It then subsequently accepted an engagement from par ties interested in the other view, and drew diamet rically opposite conclusions from the same set of facts.
19. Procedure of an auditor taking an engagement previously filled by another.—Occasionally an auditor is called upon to take the place of another auditor. The client must expect that the new auditor will ask why his predecessor was displaced. A conscientious, professional auditor would not undertake an engage ment where the only reason for the change in audi tors was in order to pay lower compensation. On the other hand, if the work of the previous auditor for any reason was unsatisfactory, or the personal rela tion not harmonious, there is no reason why the new auditor should hesitate to take the place of his prede cessor.
The new auditor will no doubt request the client to furnish him with a copy of the last report of his predecessor. There is no objection to complying with this request. In fact, it will enable the new audi tor to see the method in which the proprietor was ac customed to receive his financial statements, and en able him also to observe the character of the previous work. In light of these facts he may be enabled to render more satisfactory service than did his prede cessor.