Johnny is a CPA performing an audit on the ABC Company. He finds himself in a precarious situation when some paperwork goes missing. Read more in the  PCAOB Workpapers Case

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As you read the case study, think about the following:

1. Which standard(s) addresses workpapers and proper documentation?
2. What professional standards and ethical principles did Johnny violate?
3. Who are the main stakeholders aside from Johnny? How might each of these stakeholders be affected by Johnny's choices?
4. How might Johnny rationalize his behavior as acceptable?
5. Johnny failed to speak up when confronted with an ethical dilemma. What factors contributed to his silence? Assume that they wanted to act ethically. How could they have given voice to their concerns?

 

Assume that over the weekend, Johnny asks you for your recommendation of what he might do. Prepare an email recommending alternative actions. In your email, reference the AICPA Code of Professional Conduct, The PCAOB code of Professional Standards, and the appropriate ethical principles to support your opinion.