Ethics Case Essay

995 Words Apr 1st, 2015 4 Pages
Ethics Case: Good Works Bad Accounting? The dilemma/ethical issue that arises out of this case is in the hands of Jill Lassiter. She is the newly appointed executive director of a charity dedicated to helping single mothers called Good Works for Women. She must get the financial statements in order so that they satisfy Ms. Lyndelle Oakes, the organization’s largest donor. Jill must decide whether to restate her budget using faulty estimates or to be honest about the organization’s difficulties and face losing a crucial donation. Jill knew that being the executive director of the charity would not be easy, especially considering the charity’s past financial troubles. When the last executive director quit, the board had been slow in …show more content…
From an ethical standpoint, showing the correct financial statements is the morally correct course of action. Section 55 Article IV: Objectivity and Independence under the Code of Professional Conduct of the AICPA, states that “a member should maintain objectivity and be free of conflicts of interest in discharging professional responsibilities. A manner in public practice should be independent in fact and appearance when providing auditing and other attestation services. Under the first subsection of this article, it states that objectivity is a state of mind, a quality that lends value to a member’s services. It is a distinguishing feature of the profession. The principle of objectivity imposes the obligation to be impartial, intellectually honest, and free of conflicts of interest” (ET Section 55-Article IV). It is Jill’s and Good Works for Women’s responsibility to not act in their own self-interest and act in the entire public’s interest and should maintain objectivity while performing their services to others. In this case, the stakeholders are the women receiving aid from the program. These women would be considered stakeholders because these are the individuals who face the most losses if donations cease to continue. Another group of stakeholders that would be considered are the employees of the organization because all of their jobs are on the line if the donations stop. Specifically, Jill is the newly

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