To resign or to serve Background of case: The Prairieland Bank was a medium-sized, Midwestern financial institution and their management have a good reputation for backing successful deals. Since their profit was decrease, it has caused their management start to renegotiate many loans. Ben Hunt who is the audit partner on the Prairieland Bank was concern to give an opinion on the fairness of their business financial statement. This is because the provision for doubtful loans is too low even they have taken many loans. During the interview to discuss this problem with the CEO and Vice President of finance, he was told that they already know it but they didn’t want to increase the provision as their profit will decrease. In addition, Ben was…show more content… If James serves to the Prairieland Bank, they maybe just follow their client’s financial systems. However in the long term period, this could affect their reputation as they did not giving any correction or recommendation of it. If other auditor especially for external auditor comes to audit their client’s financial reporting, they will think that James and their client are conflating with each other since the fraud make by client is clear and it is illegal with the financial regulations. So, in the future, no client will hire Ben and James as their auditor and indirectly their firm also will affected by his doing in which they will lost more client.
To resign or to serve Stakeholders in the Case: 1. 2. 3. 4. 5. 6. Prairieland bank Ben Hunt James London CEO of Prairieland Bank Insurance Company Jack lane
Propose Decision in the Case: To visit the client and indicate the intention of Ben Hunt and James London to resign
When I make the decision I must ensure that:
The decision should give more benefit than cost/ burden to the stakeholders
The distribution of benefits and cost/ burden should be fair to all stakeholders.
The decision should not offend the rights of stakeholders and decision maker.
To resign or to serve Case Evaluation According to the 5 Questions by Graham Tucker:
Ethical or Not Ethical