Missing travel documentation.11 Tim, a CPA, works for an auditing firm and has been placed in charge of an annual audit for Dalton Enterprises, a medium-sized firm with $20 million in assets. Mr. Dalton micromanages the family-owned firm except the finance area, which he leaves to his son Chauncy, recently appointed as VP of Finance. Chauncy’s duties include the appointment of auditors. Past audit reports have never been circulated outside the firm. They have been quite detailed, including all changes in general ledger accounts, because Mr. Dalton uses the reports for administrative control purposes.

Tim notices that travel expenses are $20,000 higher this year, due to expenditures authorized by Chauncy.Most of these expenses are undocumented, but the firm’s controller seems unconcerned. Tim finally raises the issue with Chauncy, who questions why auditors would be skeptical of his honesty. He says that it is typical of “bean counters” to focus on minor issues while ignoring possibilities for major efficiency improvements. He ends the interview by asking, “What are we paying you guys for anyhow?”

How does virtue ethics relate to Tim’s decision as to what to put in the report?