Ethics Case

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Ethics Case: Good Works Bad Accounting? The dilemma/ethical issue that arises out of this case is in the hands of Jill Lassiter. She is the newly appointed executive director of a charity dedicated to helping single mothers called Good Works for Women. She must get the financial statements in order so that they satisfy Ms. Lyndelle Oakes, the organization’s largest donor. Jill must decide whether to restate her budget using faulty estimates or to be honest about the organization’s difficulties and face losing a crucial donation. Jill knew that being the executive director of the charity would not be easy, especially considering the charity’s past financial troubles. When the last executive director quit, the board had been slow in…show more content…
The change would only be temporary in order to get the necessary donations from Ms. Oakes, but it would be misleading Ms. Oakes as well. From the other point of view, faithfully representing the financial statements is honest and Jill wishes to act with a tremendous amount of integrity and truthfulness. According to the AICPA’s Code of Conduct Section 54, Article III, “Integrity requires a member to be, among other things, honest and candid within the constraints of client confidentiality. Service and the public trust should not be subordinated to personal gain and advantage. Integrity can accommodate the inadvertent error and the honest difference of opinion; it cannot accommodate deceit or subordination of principle” (ET Section 54-Article III). Jill knows that changing estimates is not the right decision, even if it means losing a crucial donator in Ms. Oakes. Charitable organizations have to have some sort of expectation of possibly losing key donators, especially if their business income is significantly declining. Changing the estimates on the budget is a way of curving the law and giving false and misleading information to Ms. Oakes. Also, even though Ms. Oakes has warned Good Works for Women that she would stop her donations if the

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