Solving Ethical Dilemmas

Solving Ethical Dilemmas in the Accounting Profession Angie Vega Axia College University of Phoenix

Solving Ethical Dilemmas Daniel Potter is an accounting professional whom recently graduated and had studied in the code of ethics and it is extremely familiarized with the policies and guidelines about the Accounting profession. He recently was hired at the company Baker Greenleaf in which he was going to perform as an accountant and auditor. His first project was given to him with the background and the team involved in the project. He was going to

be responsible to review and audit a very important and a key account to the company: A real estate company. According to the descriptions that were given to Dan, this whollyowned real estate subsidiary account had given problems to Baker in the past and the issues are needed to be resolved. He was also introduced to the Team that was going to be involved in the project. Dan was very elated to be included on the special assignment team; success could lead to an important one-year promotion. (Ethical Governance & Accountability, 2007 p. 286). The team involved in the project was Oliver Freeman, the project senior, Gene Doherty, the allotted subordinate to Dan to help him with the project and Daniel. Oliver Freeman was described as very strict authoritarian that want things his way. The previous issues with this account along with the Team that was going to work with Dan in this project could present a challenge to Dan. However, judging for Dans background in the knowledge that he obtained about work ethics, it could be also reliable the development, process and results of the project. Dan performed his audit as instructed and another challenge raised. He found several discrepancies on his audit with a particular interest in one real estate property that was valued in the balance sheet at 2M, but after his estimate the property was not worth more than 100K. The description of the property could sustain Dans theory or results: A run down property that is located in an undesirable neighborhood and is been unoccupied

Solving Ethical Dilemmas for a while. This factors depreciate the property to the results that he stated on his report. The next challenge for Dan is to present and discuss the proposal for the write down of 1,900,000 with the Subs managers, which definitely presented a disagreement. The

disagreements came to place because the group had a future intention to rent the property in discussion and the result of this audit could present a problem with the rental price or the profit for it. There was also lack of communication between the company and the customer to review and resolve the matter, and this make the situation worse. Dan was needed to make the decision by himself based on his findings and to determine if the report was going to be presented with his findings. He would have to determine by the AICPA regulations and compare with the existing scenario, his findings and the difference of opinion involved in the group as well as the conflicts to help him on his course of action. The very important decision was in front of Dan now to present to Oliver Freeman, the senior project manager the results of the audit along with the recommendations and plan of action. Dan finally presented and submitted his audit results to Oliver in a meeting that did not end with a positive response from Oliver. The decision was made that Dans report was not going to be used or take in consideration, but a clean copy was presented by Oliver supported by the rest of the team. Dan was also given a negative evaluation implicating the inability on his performance. The disagreement and conflicts with the reliability of the reports and the audit were in question, but the majority won over Dans plan of action. Unfortunately, Dan was not proactive in continue the investigation with the resources that could be available for him, including legally. As a result, his ultimate lack of action indicates that he turned to be just

Solving Ethical Dilemmas

like the rest of the team just accepting the documentation the way it was presented with the irregularities and discrepancies that were found but covered. Dan became as unethical as the rest of the team because he did not get involved and pursue what was the truth and the reliability of his report and findings. His decision of not speaking up about the reality of his analysis shows also dishonestly and may lead to future fraudulent activity from the company with his support. Dan was unable to communicate effectively and promptly in an effective manner to the people who could investigate in depth his findings. His plan of action should of been presented, analyzed and argued until the end. He acted unethically with his lack of communication and his ultimate plan of action.