The questions that I solved Andy Anderson works in a public accounting firm He was recently promoted to manager and hopes to move up the ladder to partner one day Anderson was contacted by management at Positively Positive, Inc The management of Positively Positive asked Anderson to prepare bid to audit Positive's financial statements In discussing the audit fee, Positive's management suggests a fee structure in which the fee depends on the reported profit of Positive The higher the reported profit, the higher the audit fee to Anderson's firm Apply the ethical decision making process to this situation 1) Is there an ethical concern If so, what is it 2) What options are available List at least three options and the potential consequences of each 3) What should Andy Anderson do Justify your response I need one good comment about my work Yes there is a ethical concern here Andy has the incentive to move up the ladder of the company and getting a better Audit Fee by falsely reporting their profit could do that for Andy 3 options for Andy He could file the correct reports and get proper Fee Depending on how much the profit is it could lead to management not being happy with results limiting Andy's potential growth and possibly even demoting him He could lie on the reported profits leading to a better fee and also a possible promotion The consequence's of this could be Andy gets caught fired and possibly even run into legal troubles He could go to his higher ups and tell them the situation so they can decided how best to proceed This could lead to them not respecting Andy for his lack of initiative and also possibly lead to the consequence's of choice number 2 if management decided to go through with it I believe that the best choice for Andy is to just file the correct reports and pay the fee given The temptation of lying just to get a better fee is far to risky and could lead to some serious repercussions If Andy just does his job well overtime his chances of moving up in the company seem far better than if he decides to be unethical to try and get a better price

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The questions that I solved Andy Anderson works in a public accounting firm. He was recently promoted to manager and hopes to move up the

The questions that I solved

Andy Anderson works in a public accounting firm. He was recently promoted to manager and hopes to move up the ladder to partner one day. Anderson was contacted by management at Positively Positive, Inc. The management of Positively Positive asked Anderson to prepare bid to audit Positive's financial statements. In discussing the audit fee, Positive's management suggests a fee structure in which the fee depends on the reported profit of Positive. The higher the reported profit, the higher the audit fee to Anderson's firm.

Apply the ethical decision making process to this situation.

1) Is there an ethical concern? If so, what is it?

2) What options are available? List at least three options and the potential consequences of each.

3) What should Andy Anderson do? Justify your response.

I need one good comment about my work

Yes there is a ethical concern here. Andy has the incentive to move up the ladder of the company and getting a better Audit Fee by falsely reporting their profit could do that for Andy.

3 options for Andy

He could file the correct reports and get proper Fee. Depending on how much the profit is it could lead to management not being happy with results limiting Andy's potential growth and possibly even demoting him.
He could lie on the reported profits leading to a better fee and also a possible promotion. The consequence's of this could be Andy gets caught fired and possibly even run into legal troubles.
He could go to his higher ups and tell them the situation so they can decided how best to proceed.This could lead to them not respecting Andy for his lack of initiative and also possibly lead to the consequence's of choice number 2 if management decided to go through with it.

I believe that the best choice for Andy is to just file the correct reports and pay the fee given. The temptation of lying just to get a better fee is far to risky and could lead to some serious repercussions. If Andy just does his job well overtime his chances of moving up in the company seem far better than if he decides to be unethical to try and get a better price.