CASE 7.3
BUD CARRIKER, AUDIT SENIOR
Synopsis
Bud Carriker had a plan. After graduating from college with an accounting degree, Bud
intended to spend several years in public accounting working as an independent auditor. Then he
would seek a mid-level accounting position with a firm in the banking or financial services
industries. His eventual career objective was to become a controller or chief financial officer in one
of those industries.
During the first several years that Bud was employed on the audit staff of one of the major
accounting firms, he requested an assignment to a bank or financial services audit engagement. Near
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Bud Carriker, Audit Senior—Key Facts
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1. Bud Carriker, a college basketball player, chose to major in accounting because he realized that
the accounting profession would provide him with an opportunity to earn a good livelihood.
2. Bud decided to begin his career in public accounting on the audit staff of a major accounting
firm.
5. Bud finally got his wish when he was chosen to serve as the audit senior on the audit of a bank
that his firm unexpectedly acquired as a client shortly before the beginning of his fifth busy season.
6. After completing preliminary work on the engagement, which included meeting the bank’s
8. Initially, the partner was reluctant to tell Bud why he was being removed from the engagement.
10. A few months after being removed from the bank audit, Bud left his employer for a job in the
private sector.
Instructional Objectives
282 Case 7.3 Bud Carriker, Audit Senior
1. To provide students with insight on the professional role and work environment of an audit
senior with a major accounting firm.
Suggestions for Use
This case focuses on an issue that you may not feel is appropriate to address in an auditing or
accounting course, namely, racial discrimination. However, I believe that students should recognize
that the public accounting profession is, in fact, a microcosm of society and, as a result,
disconcerting social problems such as racial discrimination, sexual harassment, etc., affect this
profession just as they affect our society. In a professional setting, these problems cannot only be
Suggested Solutions to Case Questions
1. Again, this case focuses on very sensitive issues. As a result, instructors may want to consider
the interpersonal dynamics of their given classes before deciding how to address the case questions.
In retrospect, we would hope that as soon as Saunders perceived the underlying reason for
Charles’ request, he would simply have told Charles that the race and gender of individual auditors
2. Interpretation 501.2 of the AICPA Code of Professional Conduct is entitled “Discrimination and
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determines that he or she has violated “any of the antidiscrimination laws of the United States or any
3. I will not presume to answer this question since I am not a racial minority. When covering this
case, I typically ask minority students if they would consider answering the question.
4. Hopefully, the attention that has been focused on racial discrimination within the work