Managing Ethics risks Flashcards Preview

Ethics final > Managing Ethics risks > Flashcards

Flashcards in Managing Ethics risks Deck (10)
Loading flashcards...
1
Q

In the “To qualify or not” case, what were Jane’s choices?

A
  1. approach another partner
  2. contact a lawyer
  3. keep written notes/memos of the meeting but do nothing
  4. reapproach Mr. Viccio
  5. contact professional body
2
Q

what was Jane’s dilemma?

A

a young auditor is being told to do sth against her better judgment
her senior professionals are acting out of self interest improperly

3
Q

what can coworkers, employees, the accounting profession and the government do to help the profession make ethical choices?

A

coworkers: mentoring, team decision making, respect
employers: tone at the top, ethics training, culture and open communication, clear policies
accounting profession: rules, guidelines, enforcement, whistleblower encouragement
society: rules-SoX and general; example of public figures

4
Q

what are the challenges/dilemmas auditors face?

A

personal integrity
independence from self-interest
independence from client’s interests
pre-determination of an audit outcome (want a clean opinion despite findings)

5
Q

What else dilemmas?

A

materiality of audit findings
removal, change and jeapodization of audit evidences
jeopardization of client relationship
responsibilities of junior auditors

6
Q

Tell me about Dan Potter in the dilemma case

A

fresh out of school
serious about ethics
possible promotion if receiving good review after this engagement

7
Q

Tell me about Oliver

A

very stubborn, not keen for subordinates’ opinions

had previous small disagreements w/ Dan in the beginning

8
Q

what problem did Dan encounter?

A

Found out a $1.9 M disagreement in real estate valuation w/ client
Oliver said it’s immaterial, but it consisted 7% of revenue for client’s sub
Oliver told Dan to take out his opinion page and change it to clean

9
Q

what are Dan’s options?

A

Talk to partner in charge/concurrent review partner/ethics team
talk to authorities if firm authorities insist on Oliver’s opinion

10
Q

what was lacking in the firm to encourage integrity?

A

promotion structure
authority hierarchy-
no outlet for ethical dilemmas