Solving Ethical Dilemmas in the Accounting Profession

Potter also knows that many partners of the accounting company support the code ethics and morality with respect to the profession and he got this impression while discussing Senator Metcalf 's report with these partners . The ethical and moral responsibilities of accountants has increased after the SOX Act was passed and implemented in organizations and the public expectations for high ethical standards in accounting firms have increased especially after the Enron and WorldCom disasters (Linck , Netter Yang , 2007 Potter has two options available , he can leave the matter as it is or

br report this matter to the management of the company or a board . If he decides to do nothing about the report , he faces a negative performance evaluation which jeopardizes his future career but both the client company and accounting firm could benefit from the clean report . If there is a lawsuit he would be held personally liable and face the consequences . If he reports the matter to the upper management , they could consider his opinion but the opinion of his manager would be given preference but there is a chance that the company would take into consideration the ethical issues related with the report . There is no board available in the accounting firm to address such issues but the SOX Act established the Public Company Accounting Oversight Board - PCAOB to govern the issues related to audit and accounting firms . Potter can report this matter to the board . The board will not only act on Potter 's suggestions but his position in the firm and in the accounting profession will be protected by the board under the whistleblower protection program (United States Department of Labor , 2004

Conclusion

It is found through study of the case that Potter has two vigorous options in the current situation , one is to report...