Professional Ethics Essay

861 WordsOct 4, 20124 Pages
Ch 4: Professional Ethics 4-28 Cases a. This presents an ethical dilemma for Barbara, because she is faced with the decision as to what actions or behavior would be appropriate for this situation. Barbara’s ethical dilemma necessitates deciding whether she should communicate her findings to the client for adjustments or to disregard them as instructed by Jack. b. Six-Step Approach: 1. | Relevant Facts: | | * The accounting firm for which both Barbara Whitley and Jack Bean work for is Green, Thresher & Co., CPAs. * Jack was a senior auditor, while Barbara had been an auditor for less than a year. * In February 2011, Barbara was on the team conducting an audit on Delancey Fabrics. * The CPA firm was…show more content…
| | | | Jack Bean | | * Instructing staff assistant to violate professional responsibility * Success on audit engagement may be affected * Integrity and credibility as a senior may be affected * Performance evaluations may be affected * Employment at CPA firm may be affected. | | | | Green, Thresher & Co., CPAs | | * May result in an inaccurate audit opinion * May affect firm’s integrity and credibility as a CPA firm * May result in a legal suit * May affect the attitudes of current and prospective employees toward the firm. | | | | Delancey Fabrics | | * Failed to accurately state property items * Integrity and credibility may be affected * Current and prospective employees’ attitudes toward it may be affected * Opportunities for loans and equity may be affected. | | | | 4. | Alternatives/s: | | 1. Inform Jack that she will not disregard the misstatements, because of their relevance. 2. Accept the directives of Jack Bean, audit senior, as the final word on the issue. 3. Press on further to report findings to a higher position (than audit senior) at CPA firm – while still following the chain of command – until a responsible, corrective action is taken regarding the misstatements of Delancey. 4. Refuse to work on the Delancey Fabrics audit. 5. Quit working for the CPA firm altogether. | | | 5. | Consequences: | | 1. In

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