Solving Ethical Dilemmas in the Accounting Profession
University of Phoenix
ACC 260 Accounting Ethics: Keeping it Clean
04 February 2009Solving Ethical Dilemmas in the Accounting Profession
The purpose of this assignment is to take into account the ethical dilemma(s) lined out in this case. We will review and evaluate this case. In this text we will:
• describe the dilemma at hand,
• describe the events that created this dilemma, and
• provide a possible solution.
Dan Potter works for one of the “Big Eight” accounting firms, Baker Greenleaf, as a staff accountant (Brooks, Para 1, 2007). Dan has been studying the code of ethics for accountants and the related professional guidelines, as he prepares for his CPA exam. He has focused on ethical situations which may yield dilemmas. He understands that the guidelines are useful as a tool, but that he must have a good base of personal integrity and professionalism to be effective. He knows that “every independent auditor was obligated to maintain professional integrity, if what he believed to be the best economic system in the world was to survive” (Brooks, Para 2, 2007). Baker was given an assignment on a special audit which was shared with another Big Eight firm (Brooks, 2007). This audit assignment was expected to lead to a permanent account with this client if the audit went well. Dan was put onto the skilled team assigned to this work.
Dan had to perform the review of a wholly-owned business subsidiary by himself. Oliver Freeman, his project manager, gave him the company, letting Dan know that they had had trouble with this company in prior assignments. Dan was told to resolve any issues that arose and provide within one month a clear outline of the work at hand. Gene Doherty was also assigned to work with Dan, as he had provided assistance to Oliver on previous jobs. Soon these two found out that Oliver...