ACCT 530 Week 1 Case Study 1-8 (A Faulty Budget)

ACCT 530 Accounting Ethics and Related Regulatory Issues

(Keller Graduate School - Spring 2016)

Daniels faces the decision to do the right thing by alerting his boss or follow the advice of his friend to remain silent until the error becomes an issue in the end.

1.     Describe the legal and ethical issues surrounding the case.

Based on the information given, there are no legal issues surrounding this case. The ethical issues in this case focus on the professional conduct principles of responsibility, due care and integrity. The AICPA Conduct of Professional Conduct principles require accounting professionals to—

·         discharge professional responsibility to the best of their ability,

·         act in a way to protect the public’s interest, and 

·         Perform duties with the highest sense of what is right and just.