Determine the facts Miller Yates Howarth

Determine the facts Miller Yates Howarth (MYH) is an audit firm where David Little works in that firm as a senior. He is a part of a 3-person team who is currently working on a client’s urgent material loan application which must be delivered to their partner on Monday morning. This team is working very hard even in the weekends to get the job done. After the completion of their work, they will be gifted with the solid incentive along with the name and fame of the auditors and the firm as well. But suddenly, John, one of the team member calls in sick on Sunday which leaves the rest of the team to work harder, and they finally get it done.
However, David gets informed that John was not officially sick and was hanging out with his girlfriend on the very day. Here, David is in ethical dilemma whether to call John as his team member in this assignment or just keep him aside as he has not been a part of it as the rest of the members, but John is also his good friend and they hang around most of the time after office.
Identify the ethical issue
All the stakeholder involved:
? David Little
? John
? The audit firm and its partner
? The audit team members

The ethical issue:

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Should David act honestly and fairly by discussing what John had did and how they had to work in his absence without saying it a weekday or a weekend, with the audit manager and partner, or should David remain quiet and let John be a part of it.
Identify the major principles, rules and values
• Integrity—David as a senior auditor should be straightforward, honest and sincere in his approach to professional work.
• Objectivity- David should not allow any kind of biasness no matter how John is related to him and should maintain his professional judgement.

• Professional behaviour – David should adhere to the relevant laws and regulations and must avoid any activities which will disregard his profession.
Specify the alternatives
? David can keep quiet and ignore what happened

? David can inform the audit manager about the issue and what difficulties they had to face and act against it.

? David can discuss the situation with John and ask him to explain himself and clear the matter.
Compare values and alternatives
? David can keep quiet and ignore what happened-

Ignoring what happened and doing nothing is not appropriate with the given norms and values. David will be considered disregarding his professional behaviour and integrity towards his profession. He needs to speak out about what unethical activities had occurred and prevent this from happening again.

? David can inform the audit manager about the issue and what difficulties they had to face and act against it-

Being in this profession, David must inform the behaviour of his subordinate to the management to not let it occur again. Respecting his profession and integrity, he should be loyal towards his work and should not be biased towards his friend.

? David can discuss the situation with John and ask him to explain himself and clear the matter-

David knows that John is not ethical but can give a chance to explain himself and clear the issue. However, there will be a conflict towards his duty and his team members.

Assess the consequences
? David can keep quiet and ignore what happened

Short term consequences
1. David may fail to maintain his ethical principles of integrity and objectivity
2. John may be motivated to do it repeatedly.
3. The unethical behaviour may not be reported

Long term consequences
1.David’s honesty and integrity may be questioned.
2. John may be motivated to do it repeatedly.
3.The activities may be strictly monitored.

? David can inform the audit manager about the issue and what difficulties they had to face and act against it

Short term consequences
1.John may not be considered a good team player and may not be trusted ever in that firm.

Long term consequences
1.David may be well regarded for his integrity and objectivity and may be awarded a chance for future promotion.
2.David and other team members may be able to maintain integrity and objectivity as a motivation.

? David can discuss the situation with John and ask him to explain himself and clear the matter

Short term consequences
1. David may be well versed of John’s situation and may have a different view towards him and the situation

Long term consequences
1. David may be well regarded for his integrity and objectivity

Make your decision
As an individual, David little should communicate this situation with John first and should let him know how hard it was for them to take things under control and as an auditor, he then should make John aware that his unethical behaviour will be shared with the management and would take an action against it.

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