You are the founding partner of a CPA firm, specializing in internal control auditing. After five years of hard work, your excellent reputation is bringing in many customers. One day you find out that your health insurance company is cancelling your policy. This could be a major disaster. You call the insurance company and discover that the reason they are cancelling your policy is a series of fraudulent claims submitted by one of your employees.

They are for large amounts to a spinal surgery clinic that doesn't exist. Your firm is very close and you know everyone by name. You know that some of your employees are starting families, and they are counting on your firm's health care plan. You investigate the claims internally to save your health care plan which benefits all the employees and their families. You discover that the false claims were filed by your brother, whom you brought into the firm a year earlier as a senior partner. You and your brother play tennis every Tuesday and Thursday after work. He hasn't missed a game since the two of you were in high school.

 

1. Identify the problem.
   1. What is the environment?
   2. What is the situation?
   3. What are the options?

 

1. Identify the people and groups affected by choosing one of the above options.
2. 
   
3. Individuals:  self, boss, client, subordinate, etc.
4. Groups:  company, public, family, profession, etc.

 

1. Build a decision framework - What is going to be the basis for my decision?
2. Consequentialism - looking for good results or least harm
   1. What will be the result of the decision for me personally?
   2. How are the above people and groups affected?
   3. Are they affected negatively or positively?
   4. 
      
3. Deontology - duty and obligation
4. 
   
5. How deep is my obligation to each of the people and groups?
6. How do I prioritize conflicting duties?

 

1. Virtue ethics - Who am I?
2. 1. What fundamental principles are in play?
   2. What norms or traditions I practice are being challenged?
   3. What personal values that I hold are being affected or threatened?
      1. Am I being asked to do something that I don't believe in?
      2. Am I being asked to ignore something that I feel must be addressed?

 

1. Make a decision
2. 
   
3. Base your decision on values that are supported by principles
4. Make a commitment to the decision
5. 
   
6. Take action
   1. Do what you feel is right for the right reasons - Never mistake temptation for opportunity
   2. Let the chips fall where they may - A person who ignores wrong becomes either an accomplice or the next victim

Answer rating: 100% (QA)

Identify the problem The problem is that the health insurance company is cancelling the CPA firms policy due to fraudulent claims submitted by one of ... View the full answer