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    Group 4

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    Aureljo Rich Labonite
    Frank Doran is an audit manager who may be promoted to partner if he continues performing at a high level. He is auditing Machine International and found they use a "bill and hold" accounting method questioned by the SEC. His partner believes the method is appropriate, but Frank is unconvinced. Frank must decide whether to agree with his partner's decision or report/refuse the questionable practice, which could jeopardize his promotion but uphold ethical standards.

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    Group 4

    Uploaded by

    Aureljo Rich Labonite
    1K views14 pages
    Frank Doran is an audit manager who may be promoted to partner if he continues performing at a high level. He is auditing Machine International and found they use a "bill and hold" accounting method questioned by the SEC. His partner believes the method is appropriate, but Frank is unconvinced. Frank must decide whether to agree with his partner's decision or report/refuse the questionable practice, which could jeopardize his promotion but uphold ethical standards.

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    Frank Doran is an audit manager who may be promoted to partner if he continues performing at a high level. He is auditing Machine International and found they use a "bill and hold" accounting method questioned by the SEC. His partner believes the method is appropriate, but Frank is unconvinced. Frank must decide whether to agree with his partner's decision or report/refuse the questionable practice, which could jeopardize his promotion but uphold ethical standards.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    1K views14 pages

    Group 4

    Uploaded by

    Aureljo Rich Labonite
    Frank Doran is an audit manager who may be promoted to partner if he continues performing at a high level. He is auditing Machine International and found they use a "bill and hold" accounting method questioned by the SEC. His partner believes the method is appropriate, but Frank is unconvinced. Frank must decide whether to agree with his partner's decision or report/refuse the questionable practice, which could jeopardize his promotion but uphold ethical standards.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    You are on page 1of 14

    Group 4

    Members:

    Christian Boco
    Jenilyn Camarines
    Fritzchelyn Calendatas
    Aureljo Rich Labonite
    Angello Verana
    Michaela Villa
    CASE STUDY

    Ethical Dilemmas
    1. Obtain the  Frank Doran is the
    Relevant Facts audit manager for
    Cruz and Santos
    2. Identify the Ethical
    CPAs
    Issue/s
     His Promotion to his
    3. Determine who partner if he continue
    is/are affected at the same high-
    4. Identify the quality level.
    alternatives available  He is assigned to
    5. Identify the likely audit the Machine
    consequences (pros International
    and cons)  He found out that MI
    uses “bill and hold”
    6. Decide
    1. Obtain the
    Relevant Facts  The method has
    2. Identify the Ethical been questioned
    Issue/s by the SEC
    3. Determine who  Frank conclude
    is/are affected that it wasn’t
    4. Identify the appropriate
    alternatives available  Method was used
    5. Identify the likely for 10 years
    consequences (pros  He argues with his
    and cons) partner about
    6. Decide some decisions
    1. Obtain the
    Relevant Facts  The method they
    2. Identify the Ethical are using currently
    Issue/s is already
    3. Determine who appropriate for the
    is/are affected company
    4. Identify the  Frank is not
    alternatives available accountable for the
    5. Identify the likely unethical practices
    consequences (pros that the firm
    and cons) conducted 10
    years ago.
    6. Decide
    1. Obtain the
    Relevant Facts
    2. Identify the Is it ethical for Frank
    Ethical Issue/s to agree with his
    3. Determine who partner's decision
    is/are affected and not to follow the
    4. Identify the requirements? And
    alternatives available would he just believe
    5. Identify the likely on the decision of his
    consequences (pros partner?
    and cons)
    6. Decide
    1. Obtain the
    Relevant Facts  Frank Doran
    2. Identify the Ethical  Cruz and Santos
    Issue/s CPAs
    3. Determine who  Machine
    is/are affected International
    4. Identify the  Bright and Lorren
    alternatives available  Frank’s Partner
    5. Identify the likely  Clients/Potential
    consequences (pros Clients
    and cons)
     SEC
    6. Decide
    1. Obtain the Relevant
    Facts
    2. Identify the Ethical  Refuse the decision
    Issue/s of his partner
    3. Determine who  Inform/report his
    is/are affected
    partner
    4. Identify the
     Refuse his
    alternatives
    available promotion
    5. Identify the likely  Find another
    consequences (pros Partner
    and cons)
    6. Decide
    1. Obtain the Relevant PROS
    Facts  Their business will
    2. Identify the Ethical continue operating and
    Issue/s make lots of profit
    3. Determine who  Their business can
    is/are affected operate continuously
    4. Identify the since the new SEC ruling
    alternatives available makes the method
    5. Identify the likely appropriate and conceal
    consequences (pros the unethical use of
    and cons) method in the past 10
    6. Decide years.
    1. Obtain the Relevant PROS
    Facts  They will attract more
    2. Identify the Ethical potential clients due to
    Issue/s its stable reporting.
    3. Determine who  He will not be held
    is/are affected answerable and liable
    4. Identify the incase the malpractice
    alternatives available of the firm will be
    5. Identify the likely found.
    consequences (pros
    and cons)
    6. Decide
    1. Obtain the Relevant CONS
    Facts  In case a legal dispute
    2. Identify the Ethical arises, company will
    Issue/s lose its clients.
    3. Determine who  Partners will withdraw
    is/are affected partnership and find
    4. Identify the company that has
    alternatives available greater stability and do
    5. Identify the likely not practice illegal
    consequences (pros financial reporting.
    and cons)
    6. Decide
    1. Obtain the Relevant CONS
    Facts  Business credibility will
    2. Identify the Ethical dramatically went
    Issue/s down.
    3. Determine who  Their business firm will
    is/are affected pay for penalty charges.
    4. Identify the  Company will be forced
    alternatives available to file bankruptcy and
    5. Identify the likely close their business.
    consequences (pros
    and cons)
    6. Decide
    1. Obtain the Relevant CONS
    Facts  Other company would
    2. Identify the Ethical no longer trust them.
    Issue/s  If ever the
    3. Determine who business/company
    is/are affected survives it will not be
    4. Identify the able to rise like it did
    alternatives available before.
    5. Identify the likely
    consequences (pros
    and cons)
    6. Decide
    1. Obtain the Frank shouldn’t follow
    Relevant Facts what his partner wants.
    2. Identify the Ethical But since, the method that
    Issue/s they’re using as of the
    3. Determine who moment is already
    is/are affected appropriate they can just
    clear things up, continue
    4. Identify the
    what they are doing but
    alternatives available
    his partner must be
    5. Identify the likely accountable for all the
    consequences (pros things she had done in the
    and cons) past.
    6. Decide

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