Case_Study_ETHICS_IN_ACCOUNTING_CONFLICTING_CLIENTS - Case Study ETHICS IN ACCOUNTING CONFLICTING CLIENTS BUS 5115 \u2013 Business Law Ethics and Social

Case_Study_ETHICS_IN_ACCOUNTING_CONFLICTING_CLIENTS - Case...

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Case Study: ETHICS IN ACCOUNTING: CONFLICTING CLIENTS BUS 5115 – Business Law, Ethics and Social Responsibility Written Assignment: Unit 2University of the People Abstract:This case presents an accounting ethical dilemma auditing field. it describes whether the auditors can use information and knowledge of earlier audits of other clients during the current audit or not. Examining the underlying facts and issues presented, this paper would explain the ethical responsibilities of Jennifer, who is a first-year member of her CPA firm’s management group, and provide alternatives from the Utilitarian Perspective, the Rights Perspective, and the Justice Perspective. This paper, also, would provide recommendations on the particular actions to do to support the accounting profession and principles. Keywords: Accounting, Fantastic Development, Inc., US SEC, Utilitarian Perspective, Rights Perspective, Justice Perspective,
The Chief Accountant of the US Securities and Exchange Commission (1973), stated that the accounting profession mainly constitutes providing relevant and highly qualified public information about the financial activities that would guide the investors in understanding the financial concerns integral in the capital market (SEC, 1973). This statement 47 years ago still has resonant with the responsibilities entrusted to the auditors and accountants. In the contemporary world, where greediness and competition dominate public opinion, ethical auditors and accountants are needed. This paper describes a critical situation, where the auditor has to choose between two ethical decisions, each decision has its ethical meaning and its consequences. However, the auditor has to decide which choice to pick and bear its followingconsequences.Facts of the case:Jennifer Grace is the engagement manager for a CPA firm. Jennifer is currently auditing the papers of Coshocton National Bank (CNB), Tom Ward is the CFO of Fantastic Developments, Inc., Fantastic Developments is seeking to have a loan from Coshocton National Bank (CNB), Jennifer has been involved in the auditing team for Fantastic Developments accounts the prior-

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