topic 2 - Be Attentive: The ethical actor in this problem...

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Be Attentive: The ethical actor in this problem is me because I am the one who had the ultimate decision between cost efficiency and the loyalty and satisfaction provided by the local auditor. 1. Local auditing firm: they would lose a client and damage a strong relationship 2. Other accounting firm: they are provided with an opportunity to grow their firm and take a client from a competitor 3. Local community: if the local firm has less clients, in the long run there will be less jobs in the area and less donations to the community 4. Shareholder: a company needs to provide shareholders with the best results and the local auditor is way more expensive 5. Employees: the employees who have a system with the current auditors will have to totally restart and get to know the new auditors - The first assumption is that the second accounting firm has as good of quality of service as the local accounting firm. - The second assumption is that all of these deals are legal and in compliance with GAAP. I know from being an accounting major that after SOX an accounting firm cannot provide consulting and auditing services for the same company. Since the second accounting firm is offering this option I am assuming that SOX is not in place and this is all legal. If you wish to edit the "Be Attentive" section of your analysis, click the "edit" button below. Be Intelligent: The issue in this problem is whether or not to continue to use a local accounting firm that you have a trustworthy relationship with or to switch to a firm that would be more cost efficient to the company as a whole. - One value in tension is that the company is helping the community by choosing a local firm but they are hurting because they are paying a higher price. - Another value in tension is that even though the second accounting firm is offering a better deal, it is a risk to the company because we do not know the quality of their work. - A final value in tension is risking the relationship you have created with the people of the local accounting firm in order for me to save money. If you wish to edit the "Be Intelligent" section of your analysis, click the "edit" button below. Be Reasonable: The three options that I am considering are options 2-4. I am willing to consider option 2 because it is extremely difficult to deny the same services for a cheaper price. When looking solely at the results lens, this option would make more sense. Option 3 hits at the relationship lens. I do not want to hurt my relationship that I already have with the local firm so I would
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topic 2 - Be Attentive: The ethical actor in this problem...

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