Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ethical Dilemma Case: Ryan Selling is a promising senior manager beginning his tenth year at his aud'rt rm. Ryan has been a steady performer during

image text in transcribed
Ethical Dilemma Case: Ryan Selling is a promising senior manager beginning his tenth year at his aud'rt rm. Ryan has been a steady performer during his career and is known for his technical and personal skills. However. not all of the rm's partners are enthusiastic about Ryan. His track record for bringing in new clients has been marginal. This weaknEs has not stopped Ryan from moving up the ladder, but slow expansion in the client base has meant that the rm has not made a new partner for three years. Ryan is well aware that his ability to bring in new clients is critical to his aspirations to become a partner. LILA Manufactunng Ltd [LEM], a large stationery manufacturer, has decided to put it audit and related accounting services out for tender. LiLA's current auditor performs signicant non-audit servica. In fact, fees for nonaudit services are well in excess of the audit fee. Ryan has been given primary responsibility for developing and presenting the tender to LELA's board of directors. He has nearly completed preparations for the presentation and has discussed all the specics with two partners who will have a signicant involvement in servicing the audit and related service needs of nut. should the rm be successful in its tend er. As required by the board of LELA, a detailed outline ofthe proposal presentation and 'rtemised preliminary budget were submitted four weeks in advance of the presentation. On the Thursday evening before the presentation, Ryan's wife receives a call from her sister, Prudence. Prudence's atmate. Libby, is the secretary of LILA's managing director. Libby had noticed that one of the proposal presentations was going to be done by someone named Ryan Selling and asked Prudence whether it was the same Ryan Selling who was married to Prudence's sister. Prudence had said that it was, and Libby had begun to tell her about some of the p roposals. Ijbby had said that she had noticed several things about the managing director's evaluation of the proposal submitted by Ryan's firm. Firstly, the bid was signicantly high er than one of the other bids. Secondly, the managing director had mentioned two items of major importance that had been left out of the proposal. Libby could not remember what these two items were off the top of her head, but she told Prudence that she would be willing to run off a copy of the memo if Prudence wanted her to. Ryan's wife tells him about the call from Prudence at dinner that evening. REU IR ED Outline the ethical issues and your decision using the American Accounting association {AAA} decision making model. When identifying the major principles, rules and values students are to reference the applicable section of the Code of Ethics for Professional Accountants. Maximum word limit 2 SUD words

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems Controls And Processes

Authors: Leslie Turner, Andrea B Weickgenannt, Mary Kay Copeland

4th Edition

1119577810, 9781119577812

More Books

Students also viewed these Accounting questions

Question

Describe publicity and public relations.

Answered: 1 week ago

Question

What is cultural awareness?

Answered: 1 week ago

Question

3. Im trying to point out what we need to do to make this happen

Answered: 1 week ago