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Real-Time Ethical Dilemma #1

Name zihang liu

MBA-635

Real-Time Ethical Dilemma #1

I would have volunteered the information about checks paid to the executives to the FDIC investigators because it is part of the responsibilities hoped for a registered CPA holder. Based on the natural moral law of ethics, A deontological approach indicates that there strict rules or guidelines that dictate what human being should be, be it good or bad (Boyle, 2017). Volunteering the information to the FDCI investigators would have supported the fraud claims that were occurring in the firm in full knowledge of the top management.

Analysis

In the job description of a CPA holder, one of their responsibilities is to collect and provide the evidence needed when deliberating on any assertions in the financial statements of a given firm (Weiss, 2014). In the process of reviewing the work papers, the accountant found two checks in the name of bank executives and lacked evidence to support their authorization. Availability of such details is an indication that there were fraud transactions that were being made in full knowledge of top officials in the firm. The information about the existence of such checks was critical information that the accountant should have volunteered to the FDCI investigators as a registered CPA holder. It is also evident from the scenario that both the audit manager and the CFO of the firm were aware of the fraud transactions, but they had done nothing about it. Giving the evidence to the investigators is in line with the deontological approach of the natural moral law, which requires that a person should follow the available rules when doing something.

It is also evident that most of the top management officials were aware of the problems that existed in the firm, but they maintained a low tone about it. They were doing everything possible to conceal the evidence that was available to the extent that the COO engaged the CPA accountant to try to convince him that the checks did not exist. The truth of the matter is that the accountant had found the two checks and the exact value that had been paid to the bank executives, which is a confirmation of fraud transactions with the firm. The COO of the firm was aware of the sensitivity of this evidence in the event it was revealed to the FDIC investigators. The COO had to engage the accountant to silence him as the only way the investigators would not be served with such information. The COO must have been acting in favor of the bank executives, which tells that checks were made in full knowledge of top officials of the firm.

Objection

The act of the CEO and COO to dismiss the account who had evidence of the fraudulent checks was justified as the only way they would have saved themselves and the bank executives from the consequences being proven guilty by the FDIC investigators. They would have been liable for court proceedings which would have amounted to the loss of their jobs or a legal requirement to have them pay for the money lost. The consequences would have been exaggerated because most of the beneficiaries of the fraud transactions were close relatives of the perpetrators. The desire to be found innocent by the investigators was the main reason they made efforts to prevent the accountant from spilling the truth, leading to the dismissal of the accountant.

Evaluation

There are morals and standards which control the practice of registered CPA holders. It is required that such a person acts in good faith to give accurate information about the accounting and financial statements of the organizations they work for. Volunteering the information about the checks would have been an indication that the accountant was acting professionally as required of CPA holders. Things would have been bad for the accountant if the investigators found the evidence about the checks on their own with such information not being made available right from the start. Sharing the evidence with the FDCI investigators was a way the accountant would have prevented the legal implications of a CPA holder who deliberately conceals information about fraud accounting and financial transactions.

Conclusion

It is evident from the scenario that the bank executives received money through fraud means, and the accountant had enough evidence about it. The evidence is precise to the extent the actual amount of money paid is known, and how the money was paid. A CPA holder is expected to track all financial transactions in their firms to identify any problem involved and recruiting the right corrective measure. The top officials were aware of the consequences that would have followed if the FDIC investigators found out about the checks and thus why they had to dismiss the accountant before the hearing date. The accountant had the option to engage the investigators at a personal level to share with them all the available evidence.

References

Weiss, J. W., (2014). Business ethics: A stakeholder and issues management approach (6th ed.). San Francisco: Berrett-Koehler.

Boyle, J., (2017). Natural law and the ethics of traditions. In Thomas Aquinas (pp. 157-184). Routledge.