Darlene works for Big CPA Firm. When she was being interviewed, Darlene was told by a partner in the firm that she was not supposed to underreport her time spent on various client engagements. However, after working for a few months, she discovered that everyone in her office eats time and reports hours that are under budget. Because she is not eating time like everyone else, Darlene is always over budget. She is beginning to get a reputation as a budget buster. As a result, none of the senior tax staff want her on their engagements. She is getting the worst clients and bad reviews from the people with whom she works. It appears that unless she starts eating time, Darlenes future with the firm is limited.

What potential ethical issues do you see in this situation? What would you recommend Darlene do?

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Your response must exhibit thoughtful consideration of the ethical issues at stake.

For instance, the student might identify the desired outcome for the taxpayer or group of taxpayers featured in the question and discuss how this outcome is potentially in conflict with the broader goals of the government and/or an ethical society.

Alternatively, a student might contrast a known right way of handling the situation described in each question with issues of a more practical nature, such as a low perceived likelihood of being caught and/or undergoing an IRS audit.

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