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Six Step Audit Ethics Plan Essay

From Diane’s perspective:

1) Relevant facts:
* She is planning on not recording overtime worked
* Policy is clear that employees must accurately record the time worked

2) Ethical Issue:
* Working overtime and not recording your hours worked

3) Who is being Affected and How:
* Diane: Could lose her job, Hours of work, violating the firms policy, placing will in the position to violate the firms policy, may have similar circumstances in the future that will be more challenging then this. * Will: Placed in a position to record hours incorrectly, may lose his job, prepare a poor report if not, * Overhouser & Rice: policy is being violated, affect the future budgets of new jobs, place more pressure on its senior auditors * Randy Jeffry’s: Has employee’s hiding how much overtime they are working, he cannot offer an appropriate amount of hours if he is not being told the truth. * Northco: can either not be audited by Diane quitting or have a poorly done audit by Diane not working any overtime and doing the best she can.

4) Alternatives:
* Dian could quit working for the firm
* Work the project at normal hours and inform Randy that she needed more time
* Tell Randy she does not know enough about electric utility

5) Likely Consequences:
* By quitting her job she is now unemployed and it now affects Will her co-worker.
* She is doing the ethical thing and following the company’s rules but this might cause her to lose her job or lose her position as a senior.
* She could lose her job or her position as senior once again.

6) The Appropriate Action:
Although Diane is placed into a difficult situation, I believe she should work over time to get the project done and record her hours worked. She will probably have to sit down with Randy after the audit project is complete and get into trouble for going over budget. By doing this, she is doing what the company has placed in its requirements.

From Will’s perspective:
1) Relevant Facts:
* If Will records his overtime and Diane doesn’t it will have an overrun * The firm has a policy against not recording hours worked

2) Ethical Issues:
* Working overtime and not recording the hours worked

3) Who is being Affected and How:
* Diane: Could lose her job, Hours of work, violating the firms policy, placing will in the position to violate the firms policy, may have similar circumstances in the future that will be more challenging then this. * Will: Placed in a position to record hours incorrectly, may lose his job, prepare a poor report if not, * Overhouser & Rice: policy is being violated, affect the future budgets of new jobs, place more pressure on its senior auditors * Randy Jeffery’s: Has employee’s hiding how much overtime they are working, he cannot offer an appropriate amount of hours if he is not being told the truth. * Northco: can either not be audited by Diane quitting or have a poorly done audit by Diane not working any overtime and doing the best she can.

4) Alternatives:
* Work his overtime and try to influence Diane to do so too. * Does not work the overtime hours and does his best to get the job done.

5) Likely Consequences:
* Diane could listen to him and they both get the job done and then maybe get into trouble with Randy the partner on the job for Northco Audit.
* Does a poor job on the audit and could lose the opportunity of ever becoming a senior.

6) The Appropriate Action:
Will should do the best audit he can do, if that means he should work overtime to do a well conducted audit then he should. By not working overtime and falling within the budget they would perform poorly and could harm their company in the future. I believe the best decision would be to work the overtime and record the hours. Even though it might not seem the best thing to do in the short run, as far as dealing with Randy, it is the best way to conduct this audit and it will be done correctly.

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