5115 assignmwnt week 2.docx - University of People BUS 5115 week 2 Assignment We are going to explore the relevant facts from the case study find the

5115 assignmwnt week 2.docx - University of People BUS 5115...

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University of People BUS 5115 week 2 Assignment.
We are going to explore the relevant facts from the case study, find the ethical issues, find choices for Jenifer, constraints, and then finally we will recommend what Jenifer should do. Keywords: ethics, Relevant Facts – ‘Fantastic Developments’ a private company is a potential client of Coshocton National Bank (CNB). Jennifer Grace, who was working on current year audit for CNB came to know that ‘Fantastic Development’, which had a bad financials, had applied for a loan to CNB with and excellent unaudited financial statement. Jennifer did an audit on Fantastic Development in the last financial year and found out about the companies struggling financial condition. When Jenifer tried calling CFO of ‘Fantastic Developments’ she got to know that the company is doing well, as a result, the unaudited financial statement and more interestingly, she got to know that Fantastic Developments has engaged a new CPA firm for its accounting and auditing needs. That made Jenifer wonder, if ‘Fantastic Developments’ had anything to hide, in other words – if the unaudited financial statement she found during auditing CNB, might not be correct. The fact of the matter was, Jenifer did not have a way to confirm her suspicion since her firm was not going to audit ‘Fantastic’ anymore, and there was no direct way to validate it. And Fantastic Development is a private company, so they are not going to make their finances public either, so there is no way to go to SEC and validate their financials. Ethical Issues – In this situation, the ethical problem or dilemma, Jenifer knew about bad financials of the ‘Fantastic Development’ company (her former client) and wanted to share her suspicion with CNB (her current client), to warn them, but she did not have any proof to back her suspicion. Just based on suspicion going to CNB would not have been professional either. But then, there is another point we have to consider, ‘Fantastic Development’ was a former client, which is a private company, so probably it was not ethical for Jenifer to disclose their information to CNB ( her current client) without Fantastic’ s consent.

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