Kevin Lowe is depressed. He has been with the CPA firm Stooges LLP for only three months. Yet the partners in charge of the firm—Bo Chambers and his brother Moe Chambers—
have asked for a “sit-down.” Here’s how it goes:
“Kevin, we asked to see you because your time reports indicate that it takes you 50 percent longer to complete audit work than your predecessor,’ Moe said.
“Well, Bo and Moe, I am new and still learning on the job,” replied Lowe.
“That’s true,’ Bo responded, “but you have to appreciate that we have fixed budgets for these audits. Every hour over the budgeted time costs us money.”
“Are you asking me to cut down on the work I do?” Lowe asked.
“We would never compromise the quality of our audit work,” Moe said. “We’re trying to figure out why it takes you so much longer than other staff members.”
At this point Lowe started to perspire. He wiped his forehead, took a glass of water, and asked: “Would it be better if I took some of the work home at night and on weekends, completed it, but didn’t charge the firm or the client for my time?”
Bo and Moe were surprised by Kevin’s openness. On one hand, they valued that trait in their employees. On the other hand, they couldn’t answer with a yes. Moe looked at Bo, and then turned to Kevin and said: “It’s up to you to decide how to increase your productivity on audits. As you know, this is an important element of performance evaluation.”
Kevin cringed. Was the handwriting on the wall in terms of his future with the firm? he wondered.
“I understand what you’re saying.” Kevin said. “I will do better in the future—I promise.”
“Good,” responded Bo and Moe. “Let’s meet 30 days from now and we’ll discuss your progress on the matters we’ve discussed today and your future with the firm.”
Questions 

1. Why do you think Bo and Moe did not want to respond directly to Kevin’s comment about taking work home?
Was that an ethical position to take?
2. Evaluate Bo and Moe’s position of doing what it takes to avoid not exceeding budgeted time on audits from the perspective of Kohlberg’s model of moral development. What are the implications of such a position for firm culture?
3. Assume on Kevin’s very next audit he exceeds the budgeted time allowed for substantiating all capital expenditures.
That is, he’s already spent the allotted time to gather evidence, such as invoice descriptions, and he’s only 50 percent through with the analysis. Given the facts of this case, what would you do if you were in Kevin’s position? Consider the possible effect of your actions on the stakeholders.