Section 3

3

Professional

and ethical issues

c a S eS inc lu de d in t hiS Se ction

3.1 A Day in the Life of Brent Dorsey

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59

Staff Auditor Professional Pressures

3.2 Nathan Johnson’s Rental Car Reimbursement

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63

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65

Solving Ethical Dilemmas–Should He Pocket the Cash?

3.3 The Anonymous Caller

R ecognizing It’s a Fraud and Evaluating What to Do

3.4 WorldCom

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71

The Story of a Whistleblower

3.5 Hollinger International

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R ealities of Audit-Related Litigation

instructor resource Manual — do not coPy or redistribute

79

instructor resource Manual — do not coPy or redistribute

case

a day in the life of brent dorsey

3.1

staff auditor Professional Pressures

Mark S. Beasley · Frank A. Buckless · Steven M. Glover · Douglas F. Prawitt

inS tr uc t ional o b je c t ive S

[1]

[2]

To illustrate some of the pressures new professionals sometimes face in the workplace.

To help students consider alternatives in dealing

professionally and tactfully with difficult workplace issues.

[3]

[4]

To raise the specific issues of budget pressure,

eating time, and premature sign-off.

To initiate discussion and thought about balancing professional and personal demands.

KEY FACTS

ƒƒ Brent Dorsey is a relatively new staff auditor, working on the audit of Northwest Steel Producers.

His senior, John Peters, is under consideration for promotion to manager, and feels a great deal

of pressure to finish the Northwest Steel audit within budget. He is pressuring his staff auditors,

Brent, Scott, and Megan, to work over the weekend and to meet some impossible time budgets.

ƒƒ Brent has been assigned to work on payables with Scott. He receives advice from Scott and

Megan that eating time and premature sign-off are viable ways to deal with budget pressure.

ƒƒ Brent has been married for almost a year. His...