In order to resolve the ethical dilemma mentioned in cooper and Rose case we will be using a six-step approach as defined below (Schroeder, Clark & Cathey, 2014):
1. The first step is to obtain the relevant facts.
2. Identify the ethical issues.
3. Determine the individuals or groups affected by the dilemma
4. Identify the possible alternative solutions.
5. Determine how the individuals or groups are affected by the alternative solutions.
6. Decide on the appropriate action.
Obtaining the facts
One of the most important facts here to note is that the client is a tough one and will require a huge number of extra hours and is not willing to increase its audit fees for the extra time invested …show more content…
The other individual who is affected is Barbara as she has been instructed to perform an unethical act of noncompliance with company policy and procedure. Further, John is also affected, as he is promoting an unethical act and guiding Barbara to be unethical in order to gain a personal advantage of having good relations with the Robert. The group that is affected by this dilemma is the firm as a whole, due to not reporting the chargeable hours the firm will not recover all of its cost spend on the client and hence will suffer some financial …show more content…
In case Robert refuses to report the issue to senior management then Barbara would be reporting the matter herself, in this case she will be doing her duty. However, Robert would be acting in an unethical manner. In both of the situations, the firm as a whole will be getting a benefit that the financial loss would be reduced as the time spent on the audit will be appropriately billed to client.
The best ways to address this matter is first with Robert and persuade him to report the difficulty to the senior management. They will be taking the decision that both Barbara and Robert will be performing their duty as required and management will be better in deciding what is in the favor of the firm. If they feel that the audit fee for the amount of time spend is fine then the extra hours might not be charged to the client depending upon the decision of the senior