1. Case : Eating Time Kevin Lowe is depressed. He has been with the CPA firm Stooges LLP for only three months. Yet the partners incharge of the firmBo Chambers and his brother, Moehave asked for a sit-down. Heres how it goes:Kevin, we asked to see you because your time reports indicate that it takes you 50 percent longer to completeaudit work than your predecessor, Moe said. Well, I am new and still learning on the job, replied Lowe. Thats true, Bo responded, but you have to appreciate that we have fixed budgets for these audits. Everyhour over the budgeted time costs us money. While we can handle it in the short run, we will have to bill theclients whose audit you work on a larger fee in the future. We dont want to lose clients as a result. Are you asking me to cut down on the work I do? Lowe asked. We would never compromise the quality of our audit work, Moe said. Were trying to figure out why ittakes you so much longer than other staff members. At this point, Lowe started to perspire. He wiped his forehead, took a glass of water, and asked, Would it bebetter if I took some of the work home at night and on weekends, completed it, but didnt charge the firm orthe client for my time? Bo and Moe were surprised by Kevins openness. On one hand, they valued that trait in their employees. Onthe other hand, they couldnt answer with a yes. Moe looked at Bo, and then turned to Kevin and said, Its upto you to decide how to increase your productivity on audits. As you know, this is an important element of performance evaluation. Kevin cringed. Was the handwriting on the wall in terms of his future with the firm? I understand what youre saying, Kevin said. I will do better in the futureI promise. Good, responded Bo and Moe. Lets meet 30 days from now and well discuss your progress on thematters weve discussed today and your future with the firm.In an effort to deal with the problem, Kevin contacts Joyce, a friend and fellow employee, and asks if she has facedsimilar problems. Joyce answers yes and goes on to explain she handles it by ghost-ticking. Kevin asks her toexplain. Ghost-ticking is when we document audit procedures that have not been completed. Kevin,dumbfounded, wonders, what kind of a firm am I working for?

EVALUATE how you would handle this situation if you were Kevin by addressing the 3 questions (What would you do if you were Kevin and why? How would you explain your position to Bo and Moe whenyou meet in 30 days?) from the case study. Is the decision strictly an ethical decision or are there legal issues involved? Does this impact how you would handle the situation if you were in his position? Explain and support your answers.

Book : Accounting Ethics