Ethical Issues in Accounting

Running head: ETHICAL ISSUES
ETHICAL ISSUES
Name of Student
Name of the University
Author Note

ETHICAL ISSUES1
Table of Contents
Response to question 1: The ethical issue of the case.....................................................................2
Response to question 2: The ethical boundaries of the case- principles, norms and value of the
case..................................................................................................................................................3
Response to question 3: Alterative courses of actions and the consequences of each possible
course of action................................................................................................................................4
Response to question 4: Selection of the best course of action from among the alternative courses
of action and reasons for the choice of the same and why is it the best possible choice for the
situation?..........................................................................................................................................5
Response to question 5: Responsibilities of the financial professional in this situation, and the
ways in which the responses comply with these responsibilities?..................................................6
References........................................................................................................................................8

ETHICAL ISSUES2
Response to question 1: The ethical issue of the case
The major ethical issues of the case are related to revenue, employees, maintenance and
finance. The ethical issues related to revenue is that the board of shady oaks used to follow the
policy of admission is on the basis of time such that people will be given admission on the basis
of the time they have waited in the admission list (Christians et al. 2015). However it was
decided by Jane that the company’s revenue will be increased by 20% because of the fact that the
company was going to adopt the need based admission policy. This decision was not conveyed to
Avneet. Jane further decided that the independent fees of living may have to be increased in
order to earn higher revenue in order to meet any losses faced in the support operations. The
board also decided to discuss upon the factor of employees. Since the cost of employees could
not be decreased by the company the company decided that only those employees would be kept
in the organization who worked efficiently and therefore two of the older employees were
decided to be removed from the employees list- Bert and Rose. Bert had been working in the
company for 20 years and in five more years he was going to retire and he would be able to pay
off his debt however he was removed on grounds that he worked slower than others and Rose
was removed on grounds that it was important to keep 80 clients more than Rose. In case of
maintenance the ethical issue was that Avneet suggested for an inspection of asbestos as it had
not been done for the last three years and that the provision should be increased for the same and
Jane said that the inspection should not be held. Further there were ethical issues related to
financing, Avneet said that there was a need to update the accounting policies of Shady Oaks,
since the company did not make any distinction between current and non-current assets and
liabilities and to that Jane said that it should not be done as they did not have so much of time.
When Avneet asked about loans and it was to be reviewed in six months’ time therefore should