Ethics and Regulation Q and A

October 1999

tp6

tp22

The NYSSCPA offers assistance for members' questions on ethics and regulation. Inquiries address a variety of topics such as:

Subcontractor Selection for Management Consulting Service Engagements

A member has been engaged to design and program a computer system. The engagement is well within the member's competence. The member plans to retain a contract programming organization as a subcontractor to provide additional qualified manpower. What procedures should the member consider in making the selection of a subcontractor?

When selecting subcontractors, the member has a responsibility to ensure that the subcontractors have the professional qualifications, technical skills, and other resources required. Factors that can be helpful in evaluating a prospective subcontractor include business, financial, and personal references from banks, other CPAs, and customers of the subcontractor; the subcontractor's professional reputation and recognition; materials published by the subcontractor (articles and books); and the member's personal evaluation.