Auditing 530 Essay

1072 Words Mar 4th, 2014 5 Pages
Case Study 5-4
Audit Client Considerations

The Ethics Environment ACCT 530
Week 5
Date: October 5, 2013
Audit Client Considerations

With this particular case study I will discuss several questions and facts regarding audit client considerations. 1) A brief summary of the case. 2) Identify key behaviors, attitudes and ethical dilemmas (if any) faced by the auditors. 3) Assess the philosophical and practical alternatives summarized in the case questions and evaluations of those solutions. 4) Briefly summarize what I would do faced with this situation in real life.
The case is that of a CPA firm, Cardinal & Coyote, located in Phoenix, Arizona and centers around three personnel members. Yancy Corliss is a new partner
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He also found that by the time the foreclosure process had been completed the loan had been paid off. Finally Beaudean expressed his and the team’s concerns about taking on Jost as a client. All of these actions are in accordance with GAAS requirements on due diligence and appropriate training2. However had the situation arisen that is stated in question 2 of the case study there would be a serious issue that would be faced by Rules and Beaudean both.
Question 2 asks what if Corliss had recommended that Jost be taken on as a client which surprises Beaudean and he asks what other factors did he consider and his response is “I am a new partner in the firm. I have to bring in new business. This client is a slam dunk. If we make a reasonably competitive bid, we will get the account.” “. This presents a problem for Rules and Beaudean. It is abundantly clear that in this scenario Corliss is placing his needs above that of the society (in this case the firm). This as we have learned places him at Stage 2 of Kohlberg’s Model and violates all of the Six Pillars of Character. If Beaudean decides to follow the ethical choice of reporting his team’s findings to Rules the trust that was given to Corliss by assigning him the task of doing a thorough investigation.
Due diligence and professional care are two of the core foundations upon with not only GAAP is founded upon but GAAS as well. Every accountant whether he/she is a Certified Auditor, CPA or CMA is required

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