For this case, use the same facts as presented in the previous problem. In Problem 9-75, we focused on the inappropriate actions of Robert A. Putnam, the engagement partner on the HBOC audit. In this case, we expand on the problems detected in the audit and ultimately ask that you decide on an appropriate, alternative course of action for the manager of the HBOC audit, that is, Putman’s subordinate. In the actual case, the audit manager questioned Putnam’s actions but never took proactive action (other than talking to Putnam) to correct the known audit deficiencies.
In his book, The Courageous Follower: Standing up to and for Our Leaders (1995), Ira Chaleff describes five characteristics of individuals who stand up to their organizational leaders. These characteristics include the courage to (1) assume responsibility for themselves and their organization, (2) serve the organization in a responsible manner, (3) challenge the behaviors or policies of the leader, (4) participate in transforming an organization or dealing with the difficulties associated with change, and (5) take moral action, including refusing to obey direct orders, appealing to the next level of authority, or resigning. Based on these facts, consider the ideas outlined by Chaleff, and use the ethical decision making framework from Chapter 4 to make a recommendation about an alternative, appropriate course of action that the audit manager on the HBOC audit could have taken. Recall that the seven steps in the framework are as follows:
(1) Identify the ethical issue;
(2) Determine who are the affected parties and identify their rights;
(3) Determine the most important rights;
(4) Develop alternative courses of action;
(5) Determine the likely consequences of each proposed course of action;
(6) Assess the
possible consequences, including an estimation of the greatest good for the greatest number;
(7) Decide on the appropriate course of action.

  • CreatedSeptember 22, 2014
  • Files Included
Post your question