In your opinion, which of Brent’s alternative courses of action would provide the best outcome and why? What should Brent do? How would you handle the ethical issues involved in this situation if you were Brent...what would you do and who would you talk to?

Question

What will be an ideal response?

Answer 1

Brent should probably try to talk to John first, and discuss his concerns directly with him. There may be
some legitimate things John could do to relieve the budget pressure. For example, if payables is a low-risk
area as Megan suggests, perhaps an audit approach that relies more heavily on analytics and less on detailed
tests could be justified. But departing from the audit program is definitely not a decision within Brent’s or
Megan’s authority. If John is unwilling or unable to give any helpful advice, Brent may consider talking to the
manager above John. Either way, Brent should do his best to get the work done within the budgeted hours,
but should never unjustifiably cut corners. If he comes in over budget, he can stand with good conscience
that he did what was right. Many firms reward people who stand up for ethical behavior and look very
negatively on either premature sign-off or eating hours. While short-run benefits may accrue, in the long
run, compromising ethical standards rarely if ever pays off.