Essay on Dilehmas in the accounting Profession

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Qualify or Not?

November 3, 2013

Qualify or Not?
Viccio and Martin staff accountant Jane Ashley was assigned to work on an audit team with one senior auditor Frankie Small. The audit they were to perform was on the top paying client of Viccio and Martin, Models Inc.. Jane had spent time working for the firm while finishing her academics, and had been present for many other audits. This left her excited to show her employer all she had learned during this first assignment. Jane was away at school when the yearend inventory count was made for Models Inc., so she decided to brush up before the audit began by studying the financials, audit notes, previous audits, and the inventory counts performed. Upon doing so, …show more content…

The next stakeholder is the clients themselves, the decision made on handling the discrepancies will affect the future of the company and its employees, as they could be out of work if the company closes. Another stakeholder is the accounting firm; If they decide to do the right thing it could cost them current and future revenue, again possibly affecting employees and their future earnings as well. The last stakeholder affected by the decision is Jane herself; she has her morals and reputation to consider as well earnings potential for the future.
The decision-making process for Jane should include looking at several approaches and stakeholder impact analysis. The stakeholders should be prioritized and the impacts on each looked at thoroughly before a decision is made. There is not any scenario where signing off on the false information will have a positive impact on any of the most important stakeholders. With that said, Jane should tell her superiors that she is not comfortable signing off on the audit as it stands. In doing so she runs the risk of losing her job, on the other hand she is taking a stand for herself and the two top stakeholders, the bank and the suppliers. Jane must be careful in how she proceeds as confidentiality is expected. Reporting the issue to the appropriate entities is considered a breach of that confidentiality in the US. However, this case is in Canada, where it is the duty of all chartered accountants, and Auditors to report

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