Instructions: Analyze the situation below using the 6-step approach to resolving ethical dilemmas on the next page. You should discuss each step of the approach in a separate paragraph. Therefore your finished paper should be 6 paragraphs long and approximately 2-3 pages typed in 12-point font and double spaced. Prepare the paper in Word format and submit in the dropbox set up in Western Online by the due date listed there. This assignment is worth 60 pts in total with 50% of points for content and adherence to the 6-step approach and 50% on grammatical style and presentation (writing skills).

Jon Williams, CPA, is in the middle of the real-life soap opera, Taxing Days of Our Lives

The Cast of Characters:

Oneway Corporation is Jons audit and tax client. The three directors are the officers and the only three stockholders, each owning exactly one-third of the shares

President Jack founded the company and is now nearing retirement. As an individual, he is also Jons tax client.

Vice President Jill manages the day-to-day operations. She has been instrumental in increasing the business and its profits. Jills individual tax work is done by CPA Phil.

Treasurer Bill has been a long-term, loyal employee and has been responsible for many innovative financial transactions and reports of great benefit to the business. He is Jons close personal friend and an individual tax client. (Side Note: Another CPA in Jons audit firm is the partner assigned to the audit engagement of Oneway Corporation to maintain auditor independence for this engagement.)

The Request

President Jack discussed with CPA Jon the tax consequences to him as an individual of selling his one-third interest in Oneway Corporation to Vice President Jill. Later, meeting with Bill to discuss his individual tax problems, Jon learns that Bill fears that Jack and Jill will make a deal, put him in a minority position, and force him out of the company. Bill says, Jon, we have been friends a long time. Please keep me informed about Jacks plans, even rumors. My interest in Oneway Corporation represents my life savings and my resources for my kids college. Remember, youre little Ottos godfather.

Thinking back, Jon realized that Vice President Jill has always been rather hostile. Chances are that Phil would get the Oneway engagement if Jill acquires Jacks shares and controls the corporation. Nevertheless, Bill will probably suffer a great deal if he cannot learn about Jacks plans, and Jons unwillingness to keep him informed will probably ruin their close friendship. Jon ponders the problem. Oneway Corporation is my client, but a corporation is only a legal entity. The stockholders personify the real entity, so they are collectively my clients, and I can transmit information among them as though they were one person. Right? On the other hand, Jack and Bill engage me for individual tax work, and information about ones personal affairs is really no business of the other. What to do? What to do?

Ethical Model 1. Obtain the relevant facts.

2. Identify the ethical issues from the facts.

3. Determine who is affected by the outcome of the dilemma and how each person or group is affected.

4. Identify the alternatives available to the person who must resolve the dilemma.

5. Identify the likely consequence of each alternative.

6. Decide the appropriate action.