Compromising your morals: The perils of new beginnings as an auditor

• Published date: 01 January 2024
• Author: Robert Rankin,Trish Driskill,Caroline Hartmann,Jacqui Cassle
• Date: 01 January 2024
• DOI: http://doi.org/10.1111/ijau.12321

ORIGINAL ARTICLE

Compromising your morals: The perils of new beginnings as an

auditor

Robert Rankin

1

| Trish Driskill

2

| Caroline Hartmann

1

| Jacqui Cassle

3

1

Department of Accounting, Texas A&M

Commerce, Commerce, Texas, USA

2

Department of Accounting and Business Law,

University of the Incarnate Word, San Antonio,

Texas, USA

3

University of the Incarnate Word, San

Antonio, Texas, USA

Correspondence

Robert Rankin, Department of Accounting,

Texas A&M Commerce, 2200 Campbell Street,

BA225, Commerce, TX 75428, USA.

Email: robert.rankin@tamuc.edu

Funding information

This research did not receive specific grant

from any funding public, commercial or not-

for-profit funding agency.

Abstract

This real-world inspired case describes an ethical dilemma for a recently hired auditor

and new Certified Public Accountant (CPA)/Associate Chartered Accountant (ACA)

who must choose between cheating on a mandatory firm audit training and exam and

suffering the possibility of negatively affecting her advancement with the firm and

future compensation. The purpose of this case is to provide students the opportunity

to identify an ethical dilemma, apply accounting ethics codes to evaluate potential

responses and recommend an ethical course of action. Students completing this case

will (1) understand the common pressures and complexities associated with an ethical

dilemma; (2) be exposedto the American Institute of CertifiedPublic Accountants' (AICPA

Code) Code of Professional Conduct and the International Ethics Standards Board (IESBA

Code) International Code of Ethics for Professional Accountants; (3) apply knowledge of

the AICPA Ethics DecisionTree to a real-world inspired ethicaldilemma; (4) evaluate and

analyse the various courses of action to an ethical dilemma; and (5) demonstrate the

impact tone at the top and organizational culture haveon employees and the firm. The

case was very effective in exposing and enhancing student's overall knowledge 4.28

(σ=0.57) and application 4.28 (σ=0.65)of the AICP A Code.

KEYWORDS

ACA, AICPA, audit, Code of Professional Conduct, CPA, ethical dilemma, ethics, Ethics Decision

Tree,IESBA, International Ethics Standards Board for Accountants

1|THE CASE

1.1 |The challenge

From the day, Rachel Baker was born, her parents, Wes and Dora,

dreamed of her completing college education debt-free. Unfortu-

nately, raising Rachel and her five younger siblings, was significantly

more expensive than the Bakers expected. With Dora's recent battle

with cancer, the only way for Rachel to realize her parents' dream of

her receiving a college education was with student loans.

After struggling academically, Rachel successfully graduated in

the top 20% of her class of 60 and was fortunate to qualify for direct

admittance into a state university 4 h away from her small rural home-

town. Although she expected state university would be academically

rigorous, the work was much more challenging than Rachel antici-

pated. Not only were the classes significantly larger than her high

school classes, but they were also considerably more demanding.

Despite being homesick, Rachel, the first from her extended family to

enrol in college, was determined to make her parents proud.

For Rachel, the past 6 years was a whirlwind. She never thought

this day would come. She was not only the firstperson from her family

to complete a bachelor's degree, but she also obtained a master's in

accounting degree which qualified her to take the Certified Public

Accountant (CPA) exam. After commencement, she returned to her

hometownto study for the CPA exam and reclaimedher job at the local

diner. Passing the CPA exam was a struggle for Rachel. With her par-

ents' moral support and several attempts, Rachel finally passed all four

sections of the exam. Soon afterwards, she accepted an offeras a staff

Received: 26 February 2021 Revised: 7 February 2023 Accepted: 8 May 2023

DOI: 10.1111/ijau.12321

Int J Audit. 2024;28:83–96. wileyonlinelibrary.com/journal/ijau © 2023 John Wiley & Sons Ltd. 83