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Running head: CONFLICTING CLIENTS – UNIT 2 WRITTEN ASSIGNMENTBUS 5115 - Business Law, Ethics and Social ResponsibilityTerm 1, 2018-2019Written Assignment Unit – 2From:Dr. Zeeshan AliTo:Dr. Glenn ReadUniversity of the People
CONFLICTING CLIENTS – UNIT 2 WRITTEN ASSIGNMENTAbstractIn this paper, we will explore the relevant facts from the provided case, find the involved ethical issues, find the available choices for Jenifer, limitations, and then finally we will recommend what action Jenifer should take.Facts – ‘Fantastic Developments’ a private company, a potential client of Coshocton National Bank (CNB). Jennifer Grace, who is working on current year audit for CNB came to know that ‘Fantastic Development’, which had a bad financials in the past, had applied in CNB for loan andsurprisingly with an excellent unaudited financial statement. After the careful audit of the company’s last year’s performance, Jenifer came tow know that company was in bad financial shape and was struggling a lot to gain the stable ground.When Jenifer tried to approach CFO of Fantastic Developments she got the reply that company is performing very well and he also informed her that Fantastic Development has appointed a new Certified Public Accountant (CPA) firm for its auditing and accounting needs and they do not want Jenifer’s service anymore. Apparently, this raised the suspicion in Jenifer’s mind if the company had something to hide if the unaudited report was to be audited. The fact of the matter is, 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 andnot liable to do so, so there is no way to go to government’s Securities and Exchange Commission (SEC) and validate their financials.Ethical Issues – In this situation, the ethical dilemma, Jenifer knew about bad financials of the ‘Fantastic Development’ company (as the company is her former client) and wanted to share her suspicion with CNB (her current client), to warn them about the possible fraud, but she did not have any proof to back her suspicion. Just based on suspicion going to CNB would not have beenprofessional either. But then, there is another point which needs attention and can be considered,