Essay about The Ethical Issues That Should Be Considered Before Deciding

1007 Words Jul 19th, 2015 5 Pages
Q10, Q15, Case 4-3
Q10. The ethical issues that should be considered before deciding whether to hire the controller of a client is that they need to make sure that the controller is reliable because this may lead to possible threats to independence to the firm . Hiring them is going to make the firm not independent and this would increase risk to the company as well. If hiring the controller then they would know everything about the firm and this can expose them to information that they are not supposed to know. Overall, this would not be an efficient idea to allow the controller to do tax duties for the clients because then the information would not be held confidential for the firm. If I was the manager of the firm, then I would find a different way to do the tax work, and hire somebody else that is reliable and still can maintain confidentiality for the company.
Q15. There are dangers in doing tax shelters for an audit client is dangerous because this would help the company to avoid paying taxes which they would hurt then later once the IRS catches them not paying taxes. So this would threaten their company because this is not using independence. They should not be depending on each other, but rather the firm needs to be independent or this would be causing threats to the company. Overall, it is dangerous to have tax shelters for the audit client because the chances of avoiding tax would be high. They may have been stories in the pass from other company that had the…

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