Case: Mavin Smith

Donald Smith is theChief Financial Officer (CFO) of a local public accounting practice firm. He has very good relationship with the local businesses. His firm is popular with the local community because the CFO is local and skilful in maintaining networking. An elderly local businessmen called Bob Miaow is a client of Donald's firm insists that the CFO always comes to his office to discuss his financial arrangements. While there, Bob always insists on sharing coffees with CFO while they discuss business. Mavin Smith, a senior auditor of Donald's firm also relative of the CFO. Mavin has realised for a long time that this is normal with this client Bob. He also understands that part of his firm's success is due to the CFO's effort to nurture the relationship with Bob. Owing to this relationship Bob always felt comfortable with Mavin and his team.

Due to this relationship Mavin's firm has become more dependent on Bob's business. Mavin observed that Bob has been becoming more demanding, and Mavin is concerned about the issue. In the past, Bob overruled Mavin's accountants on small matters. Now Bob wants Mavin to certify a closing stock valuation and also post an end-of-financial-year adjustment to operating expenses that Mavin believes both items are not accurate and will constitute material deference. Mavin asked Bob to provide working papers for the stock valuation and the required supporting documents for the adjustment. Bob was unhappy about it and says that he wants to discuss the matter with Mavin's CFO.

Mavin's CFO suggest him to sign the stock valuation and to post the end-of-financial-year adjustment to the operating expenses of Bob Miaow's business (that Mavin believes to be a material amount), yet Bob is not ready to provide any supporting documentation to accompany the stock valuation and adjustment. When Mavin tells the CFO that he needs proper evidence and his written authorisation to carry out their responsibilities properly, the CFO responds by saying "I thought you were a team player! Maybe I was wrong. I'll have to do something about that. Am I wrong?" Part A: Using an ethical decision-making model

Take Mavin Smith through the AAA decision-making model step-by-step and arrive at the best ethical outcome for him.

Part B: Using APES 110

Mavin Smith is a Chartered Accountant and so are the accountants in the firm, and therefore APES 110 applies to all of them.

Advise Mavin Smith of the provisions of APES 110 that are relevant here, especially the fundamental principles, types of threats and relevant safeguards. Advise Mavin Smith of what he must do to be compliant with APES 110. You must use the American Psychological Association (APA) referencing style.