Cooper And Rose Case Study
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…
Further, Robert can discuss the matter of fees with the senior members of the firm and inform them regarding the total time required and the amount the client is willing to pay.
Another solution is that if Robert does not agree to report the matter to the senior management, than Barbara herself should report the matter to the person of appropriate authority in order to inform the senior management about the situation and let them make the final decision of client acceptance and deciding the fees to be charges based on the time required to complete the audit.
Affected individuals or Groups by the solution
If Robert agrees to report the matter to the management and let them decide, then there will be no unethical situations and everyone will be following their professional duty.
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.