Accounting Case 5.1

In: Business and Management

Submitted By khairy
Words 294
Pages 2
Three accountants faced an ethical problem. One account, Russell Smith was the controller for Cardillo, the other two accountants were engagement partners named Helen Shepherd and Roger Shlonsky. The two engagement partners had an issue of whether they should accept the insufficient explanation agreed for a highly suspicious transaction or should they risk losing the client by simply inquiring and asking for more details about the transaction or ask them to fix that transaction.
On the other hand, Russell smith had to handle an issue of losing his job because he refused to cooperate with Rognlien or go against all his ethical responsibilities and principles towards his profession. People who were mainly affected by the outcome of such issues were the stockholders and creditors of Cardillo along with the three accountants mentioned above. These accountants had a personal liability and accountability to the stockholders and creditors of the company. They are very dependent on the financial data of the company which help them to make their decisions such as investing in the company and etc. Also, part of their responsibilities was to guide them to the right pathway towards executives of the company who were the ones influencing the accountants. Moreover, part of their responsibility towards their work as well as their coworkers is to always maintain a professional relationship consisting of dignity and honesty.
Each of the people had satisfied their responsibility appropriately. But, Smith did take a risk of losing his job because he intended on doing what was ethically right in relation to his profession. He went against financial statements. The other two accounts fulfilled their responsibility in the sense that Shepherd revealed the issues in the letter 8-k and Shlonsky resigned from his position as an independent…...

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