The ethical accounting profession

The ethical accounting profession

Introduction

The ethical dilemma in given case study was that Daniel porter was not able to make a firm decision on what he was going to do after that incident. Everything was going perfect until the unexpected happened that completely changed the life of Dan, his future plans were tarnished, his principles were being challenged. Moreover, he started to felt that all ethical attitude and professionalism in accounting is limited to books as in practical world these principles are not being used or are not considered important (Fogarty et al, 2006).

Daniel porter was working as a staff accountant for Baker Greenlead that was known as the largest accounting companies of the country. Dan was highly qualified individual who has accomplished everything in life on merit and have never compromised on principles. Within one and half year of service Dan was able to find a position in Barker best team of accountant that was going to audit a crucial account that is being jointly held by other large accounting companies.

The head of the project instructed Dan to conduct a complete audit on this troubled subsidiary and solve the prevailing problem in one month and for his assistance and support, Dan was assigned a partner “Gene Doherty” who is known for his strict principles and management of time (Gao & Zhang, 2006). Daniel was aware of the fact that he has to perform exceptionally well to get appraisal from his partner.

However, during the course of this investigation Dan and Oliver were involved in small disagreements over some issues but after understanding the nature of Oliver he was observed of constantly going against the advice of his senior. Meanwhile three days prior to the audit he submitted the files to his senior after solving all the problems except of one (writing off land whose actual cost is $100,000, whereas it has been documented at $2,000,000) that eventually lead to this dilemma.

The biggest hurdle in decision making for Den is his principles of morality, integrity, and ethical practices (Jackling et al, 2007). During the time of CPA, examination den developed this good habit of integrity and honesty when he thoroughly learned the code of ethics that was presented by American institute of certified accountant. Despite of being aware of various problem he could come across with because of ethical practices but he took this as a challenge as according to him these ethical rules and regulation are not only an integral part of auditing practices rather a fundamental element of reporting that has restored the faith of our client on the financial reporting framework.

In current situation, the client was asking Den not to disclose the write off amount of land; however, it cannot afford to do so as according to the regulation of AICPA it was imperative for accountant to disclose the materiality amount if the impact of difference among client and account is more than three percent(Moore et al, ...