If a CPA solicits a company that already has auditors, is this action considered ethical?

In the context of CPA ethics, soliciting a company that already has auditors can be considered ethical under certain conditions, particularly if done transparently and respectfully. A CPA can approach a company for potential audit services, even if there is already an existing auditor, as long as it does not create conflicts of interest or interfere with the responsibility of the current auditors.

Ethical standards set forth by the American Institute of CPAs (AICPA) and other regulatory bodies emphasize that CPAs should not engage in actions that mislead clients or disrupt the professional relationship they have with their current auditors. Hence, a CPA's solicitation must be mindful, ensuring there is no undue pressure on the company or the current auditor.

This approach can be seen as a legitimate business practice in the accounting profession, allowing for competitive offerings in the audit market. However, it is essential that the CPA is aware of, and adheres to, the relevant rules governing communication and competition in the auditing practice to maintain the integrity of the profession.

By understanding that approaching a company with existing auditors can be ethical under the right conditions, the selected answer appropriately reflects this balance between competition and professional respect.