Question Completion:
see attached document for the case scenario.
Answer:
1. Facts and Accounting Related Issues to the Ethical Dilemma:
a. Helen Strom is being pressurized from senior management to recognize revenue in 2018 that should be rightfully recognized in 2019, contrary to IFRS 15 or ASC 606 (Revenue from contracts with customers).
b. The big boss seems to be concerned for his self-interest, instead of acting as an agent, in the best interest of his principal. The pressure to increase the big boss's undeserved performance bonus to offset his personal gambling losses is not ethical.
c. The big boss appears greedy and pushy at the same, as indicated by his gambling habits and the unwarranted threat to withdraw Helen Strom's child-care support.
d. There is high-level unethical leadership present in this case. An entity's ethical tone should be set from the top. It should not be violated from the same top.
2. Alternative courses of action to the dilemma Helen is facing include:
a. There must be a bigger boss in this company. Helen Strom, as an auditor, has her reporting and dotted lines. She should speak up to the Chairman of the Board of Directors, the Board's Ethical Committee, and other responsible board committees. The issue can be handled at the higher level.
b. Helen Strom should also report the issue to her Institute for advice on the best way forward.
c. Finally, she should not give in to the pressure. It is in her best interest to stand by the right conduct to ensure she acts ethically.
Explanation:
Ethical issues occur when some given decisions, scenarios, or activities create conflicts with accepted or established moral principles. As illustrated in this case, both individuals and businesses can be involved in ethical conflicts. Any time an individual's or an entity's activities are put to question from an ethical standpoint, ethical dilemmas arise. The best solution to ethical dilemmas is to act ethically by doing the right thing as dictated by one's profession.
