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Group 4

Members:

Christian Boco
Jenilyn Camarines
Fritzchelyn Calendatas
Aureljo Rich Labonite
Angello Verana
Michaela Villa
CASE STUDY

Ethical Dilemmas
1. Obtain the  Frank Doran is the
Relevant Facts audit manager for
Cruz and Santos
2. Identify the Ethical
CPAs
Issue/s
 His Promotion to his
3. Determine who partner if he continue
is/are affected at the same high-
4. Identify the quality level.
alternatives available  He is assigned to
5. Identify the likely audit the Machine
consequences (pros International
and cons)  He found out that MI
uses “bill and hold”
6. Decide
1. Obtain the
Relevant Facts  The method has
2. Identify the Ethical been questioned
Issue/s by the SEC
3. Determine who  Frank conclude
is/are affected that it wasn’t
4. Identify the appropriate
alternatives available  Method was used
5. Identify the likely for 10 years
consequences (pros  He argues with his
and cons) partner about
6. Decide some decisions
1. Obtain the
Relevant Facts  The method they
2. Identify the Ethical are using currently
Issue/s is already
3. Determine who appropriate for the
is/are affected company
4. Identify the  Frank is not
alternatives available accountable for the
5. Identify the likely unethical practices
consequences (pros that the firm
and cons) conducted 10
years ago.
6. Decide
1. Obtain the
Relevant Facts
2. Identify the Is it ethical for Frank
Ethical Issue/s to agree with his
3. Determine who partner's decision
is/are affected and not to follow the
4. Identify the requirements? And
alternatives available would he just believe
5. Identify the likely on the decision of his
consequences (pros partner?
and cons)
6. Decide
1. Obtain the
Relevant Facts  Frank Doran
2. Identify the Ethical  Cruz and Santos
Issue/s CPAs
3. Determine who  Machine
is/are affected International
4. Identify the  Bright and Lorren
alternatives available  Frank’s Partner
5. Identify the likely  Clients/Potential
consequences (pros Clients
and cons)
 SEC
6. Decide
1. Obtain the Relevant
Facts
2. Identify the Ethical  Refuse the decision
Issue/s of his partner
3. Determine who  Inform/report his
is/are affected
partner
4. Identify the
 Refuse his
alternatives
available promotion
5. Identify the likely  Find another
consequences (pros Partner
and cons)
6. Decide
1. Obtain the Relevant PROS
Facts  Their business will
2. Identify the Ethical continue operating and
Issue/s make lots of profit
3. Determine who  Their business can
is/are affected operate continuously
4. Identify the since the new SEC ruling
alternatives available makes the method
5. Identify the likely appropriate and conceal
consequences (pros the unethical use of
and cons) method in the past 10
6. Decide years.
1. Obtain the Relevant PROS
Facts  They will attract more
2. Identify the Ethical potential clients due to
Issue/s its stable reporting.
3. Determine who  He will not be held
is/are affected answerable and liable
4. Identify the incase the malpractice
alternatives available of the firm will be
5. Identify the likely found.
consequences (pros
and cons)
6. Decide
1. Obtain the Relevant CONS
Facts  In case a legal dispute
2. Identify the Ethical arises, company will
Issue/s lose its clients.
3. Determine who  Partners will withdraw
is/are affected partnership and find
4. Identify the company that has
alternatives available greater stability and do
5. Identify the likely not practice illegal
consequences (pros financial reporting.
and cons)
6. Decide
1. Obtain the Relevant CONS
Facts  Business credibility will
2. Identify the Ethical dramatically went
Issue/s down.
3. Determine who  Their business firm will
is/are affected pay for penalty charges.
4. Identify the  Company will be forced
alternatives available to file bankruptcy and
5. Identify the likely close their business.
consequences (pros
and cons)
6. Decide
1. Obtain the Relevant CONS
Facts  Other company would
2. Identify the Ethical no longer trust them.
Issue/s  If ever the
3. Determine who business/company
is/are affected survives it will not be
4. Identify the able to rise like it did
alternatives available before.
5. Identify the likely
consequences (pros
and cons)
6. Decide
1. Obtain the Frank shouldn’t follow
Relevant Facts what his partner wants.
2. Identify the Ethical But since, the method that
Issue/s they’re using as of the
3. Determine who moment is already
is/are affected appropriate they can just
clear things up, continue
4. Identify the
what they are doing but
alternatives available
his partner must be
5. Identify the likely accountable for all the
consequences (pros things she had done in the
and cons) past.
6. Decide