One Firm to Provide Brentwood's Accounting and Auditing: Is That OK?

Was it proper for Brentwood to hire the same firm for the city’s accounting and auditing services for 2012, 2013, and 2014?

Brentwood Ward 3 Alderman Andy Leahy didn't think so, and the U.S. Government Accountability Office advises to "avoid the appearance of impairments of independence."

On March 4 the Board of Aldermen voted to select Schowalter & Jabouri, P.C. for both accounting and audit services for a three-year contract.

“That’s not a concern to the city, and I don’t know of any best practices that says the same firm that does your accounting work should not be doing your audit work. It makes it an efficient process because they’re familiar with it,” City Administrator Bola Akande told Patch.

Akande said the city’s staff looked at experience with similar size municipalities, and out of all the submissions they received, Schowalter & Jabouri and Hochschild Bloom were two highly qualified firms that met the city’s criteria.

In the minutes, Ward 1 Alderwoman Maureen Saunders said she thinks it’s a good idea to have a new set of eyes on the city's books and Ward 4 Alderman Tom Kramer agreed in the discussion for Ordinance 5735, the ordinance to hire Schowalter & Jabouri, P.C., to provide auditing services.

It passed unanimously. Ward 1 Alderman Anthony Harper was absent.

In the discussion for the accounting firm to be hired, Ordinance 5736, Ward 3 Alderman Andy Leahy made a motion that the city work with Hochschild Bloom for the city’s accounting and Schowalter & Jabouri for the audit. Leahy said he is not comfortable with one firm doing both. His motion died due to the lack of a second.

Leahy's was the only "no" vote to contract Schowalter & Jabouri for audit services. Harper was absent.

What do you think? Is there an appearance of lack of independence if a firm audits accounting done by the same firm?