Barbara montgomery is a first-year auditor for coopers and rose, a

Ethical Dilemma using the six-step approach outlined in, Schroeder, R.G., Clark, M.W., & Cathey, J.M. (2013) Chapter 17

 

six-step approach may be used:

 

The Case of Coopers and Rose – Barbara Montgomery’s Ethical Dilemma

 

Barbara Montgomery is a first-year auditor for Coopers and Rose, a large public accounting firm. She has been assigned to audit the Lakes Brothers, a clothing retailer with retail outlets throughout the United States. This audit has proved troublesome in the past, and during a staff meeting preceding the audit, Robert Cooley, the supervisor on the audit, says: “We are going to be required to work several hours ‘off-the-clock’ each week until this audit is completed.” He also observes that the client is putting a great deal of pressure on the firm to maintain an acceptable level of fees.

 

Barbara has been to staff training school, where it was emphasized that not charging a client for hours actually worked as a violation of Coopers and Rose’s employment policy, a violation that could cause her to be dismissed. She also knows that only staff personnel are paid overtime and that supervisors are evaluated on successfully completing audits within allowable budgets. Barbara discusses the issue with John Reed, a second-year staff accountant. John says: “Don’t worry, if you go along no one will find out and Robert will give you a good evaluation.” John says that Robert is highly regarded by senior members of the firm and is likely to be promoted to manager in the near future.

 

Required: Is it ethical for Barbara to work hours and not charge them to the client? Using the six-step approach outlined in, Schroeder, R.G., Clark, M.W., & Cathey, J.M. (2013) Chapter 17, resolve this ethical dilemma for Barbara.

 

Paper must be 2-3 pages

Include 2 sources beside the one included – Cite at least two peer-reviewed sources with in-text cites

Reference

Schroeder, R. G., Clark, M. W., & Cathey, J. M. (2014). Financial accounting theory and

analysis: Text and cases. (11 ed.). Hoboken, NJ : John Wiley & Sons. Retrieved from http://www.coursesmart.com/9781118582794/firstsection

 

 (Schroeder, Clark & Cathey, 2014)

 

The paper should be formatted according to the APA Requirements

 

 

 

1. Obtain the relevant facts.

 

2. Identify the ethical issues.

 

3. Determine the individuals or groups affected by the dilemma.

 

4. Identify the possible alternative solutions.

 

5. Determine how the individuals or groups are affected by the alternative solutions.

 

6. Decide on the appropriate action.

 

 

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