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Review the “Am I Ethical”

Paper , Order, or Assignment Requirements

Review the “Am I Ethical” section in Chapter 9.
Formulate your response to the question.
Review the author’s solution to the question on page 192.
Write a 600-word paper between that accomplishes the following:
• Explain the answer to the question of whether or not you should call the hotline to report your concerns and the reason supporting your decision, identifying any professional guidance that is relevant.
• Discusses any differences between your response and the author’s answer or reasons.
• Identifies what the confidential information in the scenario is.
• Analyzes why the client would want the information to remain undisclosed and what the potential issues could be if the information was disclosed.
Here is he “Am I Ethical” Question
Your client is an advertising agency that pays inexperienced new models $20 per hour during a photo shoot, but does not compensate them for preparation time spent in wardrobe fittings, hair styling, or applying makeup. Thus, after counting all hours worked, you are concerned that these models are being paid less than the minimum wage.
The Wage and Labor Protection Board in your state maintains a hotline for anonymous callers to report labor law violations. Informants receive a reward equal to 20% of the penalties collected from violators. If granted such a reward, you will donate it to charity.
Should you contact this hotline to report your concerns?
a. Yes, if you informed your client about this issue and it has refused to take corrective actions
b. Yes, as long as the reward, if granted, is paid directly to a charitable organization
c. No, because you learned of these violations during the course of rendering professional services
d. No, because you lack the professional training and expertise to know whether your client’s suspected misconduct is an actual labor law violation
SOLUTION TO “AM I ETHICAL?”
A CPA may never disclose confidential client information without first obtaining the client’s specific consent. Information concerning the client’s possible violation of minimum wage laws was nonpublic, and its disclosure could cause substantial harm to the client. As a result, the client had a reasonable expectation that this confidential information would remain undisclosed. The accountant’s potential receipt of a reward is irrelevant.

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