Scenario Summary

Brian Anderson has just completed his college education and has taken his first job. He has joined a professional accounting firm and has been assigned to the first engagement. Prior to starting this assignment, he was given a 2-week introductory course on the firm, its clients, its policies and procedures to be followed. He was told that in all things if he has a question concerning the assignment, he should ask the manager on the job and follow their directions. He was also instructed to keep complete the accurate records as to the time worked and the areas completed on the assignment for accurate completion of the budget and charging the client for work performed. However, while completing his first assignment, he discovered that some of the things are different or contradictory to what was described in the introductory course. He is faced with a difficult ethical dilemma.

The Dilemma

Brian is the newly assigned staff accountant on the first assignment. While on the assignment, he interacts with the other staff accountants on the assignment. During the discussions with them and with your manager, he was informed that he would be expected to work through some lunches and possibly past the normal quitting time. He was also informed that although this would be considered to be overtime, he was not expected to record the time worked or seek reimbursement for the time worked. This action was in direct contrast to what he was told to do during the introductory course. What should he do, and why?

Key Players

Brian Anderson, Staff accountant on the first assignment with the accounting firm

"This is a very difficult situation. If I do not record my time, then I will not be in compliance with the company rules and policies. If I record the time, then I will not be following the directions and expectations of Sarah, my manager. What should I do?

Sarah Reef, Manager for Brian on the first assignment

"My goal is to bring the assignment in on budget and on time. If Brian does not work the extra hours, then it will cause problems on the assignment. However, if the extra hours are charged, then I will be over budget and over costs. This will reflect badly on me and I might report Brian's lack of being able to follow orders and not being a team player."

Anna Palakov, Fellow staff accountant who informed Brian about the overtime rules

"Here is the situation. If Brian refuses to work the extra time, I will have to work his hours. And if Brian informs the partner of Sarah's expectations, people will all know that Sarah is not in compliance with the firm's policy. This is bad for everybody.

Address this ethical dilemma. Analyze the problem, define the ethical problem, recite the facts of the problem, and determine the alternatives open to Brian. When detailing the alternatives, you need to explain what will be the possible result of choosing each alternative. Then make a decision as to what alternative you would choose, and explain why.