bogus apple juice n auditor's dilema

bogus apple juice n auditor's dilema - diligence in the...

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Avishkumar Patel Prof, R. Powell 27 jan 2010 Beech-Nut’s Bogus Apple Juice Well, the most serious errors were to misinterpret the product as an apple juice. Consumers, who bought this product, were in the thought that this product comes from apple and paid price equivalent to apple juice rather than paying less. Selling such kind of product is legal and ethical, as long as it has labeled the truth and it’s safe. So definitely people are going to pay less for such kind of product, as they will be informed that this product comes with no real fruit in it. However Beech-Nut sold their product without labeling the correct contend in the product and misbranded the apple juice. Therefore, they mislead the consumers to get more prices, instead of what they were supposed to get. So in this term Beech-Nut is dishonest and has done business in illegal way. An Auditor’s Dilemma Here, we can say that as per the IIA code of ethics, whatever Alison Lloyd has done is improper and illegal. Because this code says that a members should or are required to exercise honesty, objectivity, and
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Unformatted text preview: diligence in the performance of their duties, but also to be loyal to employer. So in this case Alison is getting dishonest towards her employer. On the other hand, by shuffling a little paper around is not harming anything to anyone, not even her employer. But if she could have not done that, then it could have harmed the division manager and the heads of the four main units, who has to compulsorily achieve their quote. Also, I think, the quote system used by the company is unethical because meeting quota is weighted heavily in evaluations, and missing once is considered to be a death blow to the career of an aspiring executive at Gem. So this gives an intense pressure to the managers. So if we think morally then whatever done by Alison is ethical because she has done that, without any interest to herself and, for other people who might get hit hardly in the companys unethical system of quota....
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bogus apple juice n auditor's dilema - diligence in the...

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