Assignment: Fully Applying a Decision-Making Framework
The Locker Room Talk ethics case is something that I feel happens often when a CPA allows himself to spend too much time with his clients; having said that, I feel that this situation could have happened to anyone who is just a friendly person in general. Albert Gable is a prime example of when someone allows themselves to get too close to their client. Albert allows himself to become a personal friend with his clients, and as such, they confided in him that they were having a troubled marriage. This is something that would make any friend uncomfortable to hear about; the fact that this man became their friend and is in fact working for them makes the situation a little more delicate. I think had Albert separated his personal life with his business life, this dilemma could have been avoided. There is also the dilemma of Albert knowing that his client, Larry Wilson, may be planning to treat his wife unfairly. He also openly discussed this dilemma with a fellow loan officer, who is coincidentally another personal friend of Larry.
The first stakeholder in this situation is Larry Wilson who is supposedly planning to divorce his wife and leave her without a dime. Then there is Larry’s wife, Susan Wilson, who is going to end up with nothing if her husband actually follows through with his apparent “plan”. And then we have our loan officer who is another personal friend of Larry and also revealed to Albert of Larry’s plan to leave his wife. The bank is also a stakeholder because their reputation is at risk with this situation. Albert works for the bank as an auditor, so any mishaps will be a direct reflection of the bank. Then lastly, we have Albert Gable and his innocent daughter. Albert is relying on the bonus he will be receiving from this job to put his daughter through her first year at college.
The main issue here is whether or not Albert...