Audit

Running head: AUDIT
Audit
Name of the Student
Name of the University
Author’s Note

1AUDIT
Table of Contents
Alternative Action of Jon William.............................................................................................2
References..................................................................................................................................5

2AUDIT
Alternative Action of Jon William
It can be seen from the provided case study that, Jon William is the auditor of
Oneway Corporations that has three directors and each of them owns one-third of the shares
of the company; these directors are Raul Jack, the founder; Sandra Smith, the vice-president;
and Chris Barnes, the treasurer. As per the case, Raul Jack wants to sell his part of the
company share to Sandra Smith, and Chris Barnes is against the decision as it will make him
make him minor in the company’s share. Since Jon Williams is the auditor of the company,
he is facing ethical dilemma as Raul Jack is his tax client and Chris Barnes is his close friend.
In United States (US), it is the prime responsibility of the auditors of the companies to
comply with the ethical principles and standards of American Institute of Certified Public
Accountants (AICPA) Codes of Professional Standards at the time to conduct the audit
operations. According to AICP Codes of Professional Standards, there are six ethical codes
that the auditors are needed to comply with; they are Responsibilities, the Public Interest,
Integrity, Objectivity and Independence, Due Care, and Scope and Nature of Service. The
present situation can be solved with the help of these ethical codes (Jefrey, 2018).
It can be seen from the provided situation that Jon William is facing certain ethical
dilemma while making the correct audit decision in the provided situation due to the fact that
he must comply with the principles and standards of AICPA Codes of Professional Standards.
It can be seen from the provided case that Jon William is facing ethical dilemma in
the presence of the fact that he does not have a good relation with Sarah and she is not his tax
client. In this case, in case Sandra Smith becomes the holder of majority portion of
company’s share, there is a possibility that Jon William will not get the audit contract.
However, as per the principle of the Public Interest of AICPA, the auditors are needed to
accept the obligation to act in the interest of public and thus, should ignore any kind of