Case Study: Oneway Corporation

In this ethics case there are many relevant facts. Jon Williams is a CPA and the auditor of Oneway Corporation. Along with representing the Corporation, he also represents two of the three directors who are officers and each own one-third of the shares. President Jack is Jon’s tax client who founded Oneway Corporation but soon wishes to retire. He also wishes to consider selling all his shares to Vice President Jill, who is also an officer and stockholder owning one-third of shares. Bill, the treasurer, is a longtime friend of Jon and also his tax client. When Bill finds out that President Jack is considering selling all his shares to Jill, Bill asks Jon to keep him informed of the president’s plan. Bill’s interest in Oneway Corporation represents his life savings and ability to provide for his family. …show more content…
If he chooses to disclose information to Bill, he is affecting his confidentiality of his tax client, Jack. Not only will he be disclosing information to a friend, but Bill has material interest in Jack’s shares which is in violation of the AICPA independence rule. He will also be disclosing confidential information to the client (Oneway Corporation) employee who is denied access to the information. If it is found that Jon has released confidential information to outsiders without his client’s permission he will face major consequences going against the