To: Manager

RE: An Ethical Dilemma Scenario

April 21, 2021

"It is the professional duty of Gamm to prevent any material misstatement of the company's assets."

As a CPA, Gamm used his professional judgment and professional skepticism to analyze Beta's finances and review its account in order to conclude that the account of Rembrant International is uncollectible. Everything that Gamm discovered would need to be documented in his report in order to carry out his professional duties. Unfortunately, it is not the CPA's task to empathize a business's situation.

If I were the CPA, I would execute my professional duties and document everything I discovered due to the simple fact that the situations of the parties involved are not my concern.

As president of Midland State Bank, it is my duty to make sure I am able to collect the required money needed. I would review Rembrant's finances and determine whether or not we, as a bank, should consider the account of Rembrant International as a collectible. As I am reviewing Rembrant International's account, I am also considering their credit, can I rely on them to pay Beta Computer in a timely manner?I would inform Beta Computer of my decision and carry on from there.

For your response post, you will be taking on the role of the manager and respond to your employee's memo.Inform the employee as to what specific managerial decisions, conclusions, and/or judgments can you make from the information provided in that memo.