In her book Extraordinary Circumstances, Cynthia Cooper describes her life as going from an internal auditor to a whistleblower. In the book, she states that she never believed she was a whistleblower; rather she believed she was "just doing her job."

Required

a. What is the difference between an "ethical dilemma" and "just doing one's job"? Respond in relationship to both internal and external auditing.

b. External auditors are not thought of as "whistleblowers." However, the external auditor may find situations in which he or she concludes that the company has fraudulently violated GAAP. Management disagrees and refuses to change the financial statements. To whom does the auditor report the findings?

c. Assume an external auditor finds that an internal employee has perpetrated a fraud against the company. The amounts are material to the individual, but not to the company. Does this constitute an ethical dilemma or an ethical problem? How should the auditor decide the appropriate course of action to take? Suggest and defend your suggested action.