What to Consider When an Executor Discovers a Cash Hoard: an Ethical Case Study for CPAs.

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Abstract

This case study examines the ethical and legal issues presented to a Certified Public Accountant, along with other professionals, when involved in a situation in which the appointed executor of an estate learns that a decedent maintained a large cash hoard, apparently as the result of tax evaded income. The case study will analyze the ethical and legal provisions applicable to this situation as found in, among other places, the American Institute of Certified Public Accountants Code of Conduct, the Internal Revenue Code and the Internal Revenue Service’s (IRS) Circular 230.

The primary purposes of the case study are to provide a greater understanding of how to analyze and address an ethical dilemma under the jurisdiction of the IRS and to inspire accounting students to develop a deeper appreciation for issues presented in professional practice.

Author

• James Bruno Biagi, Stevens Institute of Technology