1 / 2 70% As you read the two case scenarios below, consider the decisions made by Johnny and Mary Jo and the resulting outcomes. What influences their decision-making? What sanctions, if any, should Johnny or Mary Jo face? Assuming that both protagonists wanted to act ethically, what could they have done differently? Would that change the outcomes? If so, how? Professional Scenario Johnny, a certified public accountant (CPA) who is acting as the in-charge/senior on the audit engagement, works on the ABC Company audit, an existing firm client. 1 Johnny works hard to complete this engagement along with his other engagements during the Spring busy season. The following Fall, the Public Company Accounting Overnight Board (PCAOB) notifies the firm of the inspection visit timing, scheduled in a little over two weeks, and the selection of ABC Company's work papers. Knowing that the PCAOB would be arriving soon to examine the ABC Company audit work papers, the manager and the partner review the work papers and refresh themselves on the details of the engagement. Johnny receives an email from the document. Johnny exchanges emails with the corporate controllor and arranges to have the letter delivered prior to 8:30 am, on the day of the Inspectors arrival. The latter is Inserted into the hard copy documents on Monday morning without documenting the true date of insertion or the reason why it is added. Johnny takes the completed, revised work papers and delivers them to the PCAOB inspectors when they arrive Student Scenario Mary Jo and Samantha discuss an exam for their hardest class this semester Accounting 355. As they leave Tuesday's lecture, Mary Jo complains to her friend, Samantha, that she did not want to fail the exam but she felt too tired to study anymore as this was her third exam this week. Samantha asks Mary Jo if she wants the test bank to study. Samantha proclaims that she has earned almost all As since she started using the test banks as study aids, knowing that she is running out of time prior to the exam date and that the exam grade will significantly impact her final grade for the course, Mary Jo downloads the test bank for the textbook from the website Samantha gave her and use it as a study aid. The test bank's cover page clearly states that the document is only for "instructor use" and contains a copyright notice at the bottom of each page. On the exam, the instructor requires students to sign a certification that they are aware of the academic integrity code of their institution and the academic Integrity policies set forth on the syllabus. Also, they must certify that they have no knowledge of violations of either the code of the class policy by themselves or other students Mary Jo signs the certifications and does very well on the test DISCUSSION QUESTIONS Apply the following ethical framework to ach scenario: 1. What standards and principles of ethics did Johnny and Mary Jo violate? Should Johnny be sanctioned by the firm or the PCAOB? If so, how? Should Mary Jo be sanctioned by the university office responsible for ensuring academic integrity? If so, how? 2. Who are the main stakeholders in each situation aside from Johnny and Mary Jo? How might each of these stakeholders be affected by Johnny's and Mary's choices, respectively? 3. How might Johnny and Mary Jo rationalize their behavior as acceptable? 4. What alternative actions would you recommend for Johnny and Mary Jo? 5. Johnny and Mary Jo both failed to speak up when confronted with their ethical dilemmas. What factors contributed to their silence? Assume that they wanted to act ethically. How could they have given volce to their concerns