Ethics Case.docx - Anna Krause 14234596 Sec. 2 Ethics Case...

Anna Krause 14234596 Sec. 2
Ethics Case
1.) Jonny works for a public auditing firm. He was the In-Charge associate for the
client, the ABC- Company, during the busy season last spring. Later that fall the
PCAOB choose the ABC- Company’s audit to review. While preparing for the
PCAOB, Johnny, the Partner, and the Manager notice that the workpapers file is
missing the signed engagement letter and an important supporting worksheet.
Johnny is asked by his manager to deceive the PCAOB by using a preliminary
version of the supporting worksheet, and revising and backdating the log, and
adding it the work paper file. He also obtains the client’s copy of the engagement
letter and adds it to the work paper. He doesn’t record either of these additions.
Johnny has to choose between following his superiors’ orders and being ethical.
2.)
Self Interest Threat : The interests of Johnny run contrary to those of the client. It
is the interest of the client to have their auditors be fairly assed by the PCAOB.