Within Chapter $17,$Accounting for Income Taxes$,$ questions of ethical consideration and ethical dilemmas are presented. The following scenario provides a vivid example of such an occurrence: Jeffrey owns a chain of $14$ auto parts stores. He has just attended a conference for small business owners, at which he attended a session on income tax reporting. The speaker discussed how critical it was for a company to adhere to FASB Accounting Standards Codification Topic $740,$ Income Taxes. Failing to accurately compute income taxes and account for the related balance sheet accounts can be considered a material weakness by an auditor and even lead to a required restatement of the financial statements $$ or worse!

Jeffrey has always relied on his CPA, Stuart Thomas, to calculate and report his income taxes and financial reports. He has known Stuart since they were both in high school, and has never questioned his work, but now he is nervous.

What recommendations do you have for Jeffrey? How may this decision affect his business, his team, and future businesses?

What ethical issues must be considered?