Soling Ethical Dilemmas in the Accounting Profession
December 09, 2012
While evaluating this case, the ethical dilemma is whether Daniel Potter should follow ethical guidelines or just follow his boss instructions. We will be evaluating many factors as well as what events led to this dilemma. We will also find a solution to this dilemma. Daniel Potter (Don) “he studied the code of ethics of the American Institute of Certified and had thoroughly familiarized himself with his profession’s guidelines morality” (Brook, 2007, pg.285). He also believed that “every independent auditor was obligated to maintain professional integrity, in which he believes to be the best economic system in the world (Brooks, 2007, Pg. 285).
Don is an accountant for Baker Greenleaf, this company is “one of the Big eight accounting firms” (Brooks, 2007, pg.285). Baker had a special assignment in which they chose the best people on the job, and Don was part of the team to do the audit. Don was going to work under Oliver Freeman while doing the audit. His helper Gene Doherty had told Don that he had work with Oliver before and that he was a strict authoritarian and very inflexible man.
Dan finished the audit three days before it was due and submitted the files to Oliver so he can review them. When Don was doing the audit he came across a few problems in which he found solutions for them except for one account. The one he could not find a solution for was one of the Sub’s largest real estate properties. The problem with this large real-estate was “valued on the balance sheet a $ 2 million and Don’s own estimate of its value was no more than $100,000” (Brook, 2007, pg. 286).
“Dan based his value estimate on the condition, location, and how long the property had been vacant. He approached the managers of the subsidiary with a proposal to write down the value of the property by 190,000 (Brook, 2007, pg. 286). But, the manager refused to write down its...
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