Assume in the Digit Print case that the venture capitalists do not provide additional financing to the company even though the accrued expense adjustments have not been made. The company hires an audit firm to conduct an audit of its financial statements to take to a local bank for a loan. The auditors become aware of the unrecorded $1 million in accrued expenses. Liza Doolittle pressures them to delay recording the expenses until after the loan is secured. The auditors do not know whether Henry Higgins is aware of all the facts. Identify the stakeholders in this case. What alternatives are available to the auditors? Use the AICPA Code of Professional Conduct and Josephson’s Six Pillars of Character to evaluate the ethics of the alternative courses of action.
Answer to relevant QuestionsIFAC, the global organization for the accountancy profession dedicated to serving the public interest, issued IFAC Policy Position Paper #4, titled A Public Interest Framework for the Accountancy Profession, on November 4, ...1. Using Josephson’s Six Pillars of Character, which of the character traits (virtues) apply to the Harvard cheating scandal and how do they apply with respect to the actions of each of the stakeholders in this case?2. Who ...1. Given the facts in the case, evaluate whether Kevin should take work home and not charge it to the job using deontological and teleological reasoning.2. What would you do if you were Kevin and why? How would you explain ...Aristotle believed that there was a definite relationship between having practical wisdom (i.e., knowledge or understanding that enables one to do the right thing) and having moral virtue, but these were not the same thing. ...Do you think Betty Vinson was a victim of “moral blindness”? Why or why not?
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