Case Study - Ethics - Locker Room Talk
“Locker Room Talk”
Introduction – Tong
Albert Gable is a partner at a CPA firm in a small town. His primary practice is personal financial planning but does do the occasional big business audit. Mr. Gable currently has a client, The Wilsons, that he is performing some personal financial planning work for. Over the course of time, the Wilsons and Mr. Gable have become good friends even playing golf with Mr. Wilson.
During the same time Mr. Gable is working with the Wilsons, he is also performing an audit for the city’s largest bank. During this audit the Wilson’s personal loan file comes up in a random sample of bank loans. Mr. Gable talks to one of the loan officers in depth about the Wilson’s and soon discovers that Mr. Wilson is not exactly being truthful to Mr. Gable regarding his personal financies. The loan officer tells Mr. Gable during this discussion that he thought Mr. Wilson was setting up his wife for a divorce and was ultimately going to leave his wife with nothing. But the loan officer did say that all that information was just “locker room talk” and Mr. Gable should keep that information quiet.
Ethical Issues and Individuals Involved – Robin 1. Mr. Gable has learned that one of his other clients, the Wilson’s have come up in the bank audit he is performing. 2. He was being nosey by going in depth with the loan officer regarding the Wilson’s loans. 3. He did not disclose to the loan officer that he was the Wilson’s personal financial planner and also their friend. 4. He has to ask himself what to do because no matter what decision he makes he stands to lose money. 5. He has an emotional attachment to the Wilson’s.
Relavent Rules – William to provide
Alternative Solutions and Consequences – Robin 1. Quit the bank audit – Mr. Gamble could lose their one of their biggest customers, the bank. The firm he works for could also choose to let his go as Partner due to the loss of the relationship and money. 2. Quit
Introduction – Tong
Albert Gable is a partner at a CPA firm in a small town. His primary practice is personal financial planning but does do the occasional big business audit. Mr. Gable currently has a client, The Wilsons, that he is performing some personal financial planning work for. Over the course of time, the Wilsons and Mr. Gable have become good friends even playing golf with Mr. Wilson.
During the same time Mr. Gable is working with the Wilsons, he is also performing an audit for the city’s largest bank. During this audit the Wilson’s personal loan file comes up in a random sample of bank loans. Mr. Gable talks to one of the loan officers in depth about the Wilson’s and soon discovers that Mr. Wilson is not exactly being truthful to Mr. Gable regarding his personal financies. The loan officer tells Mr. Gable during this discussion that he thought Mr. Wilson was setting up his wife for a divorce and was ultimately going to leave his wife with nothing. But the loan officer did say that all that information was just “locker room talk” and Mr. Gable should keep that information quiet.
Ethical Issues and Individuals Involved – Robin 1. Mr. Gable has learned that one of his other clients, the Wilson’s have come up in the bank audit he is performing. 2. He was being nosey by going in depth with the loan officer regarding the Wilson’s loans. 3. He did not disclose to the loan officer that he was the Wilson’s personal financial planner and also their friend. 4. He has to ask himself what to do because no matter what decision he makes he stands to lose money. 5. He has an emotional attachment to the Wilson’s.
Relavent Rules – William to provide
Alternative Solutions and Consequences – Robin 1. Quit the bank audit – Mr. Gamble could lose their one of their biggest customers, the bank. The firm he works for could also choose to let his go as Partner due to the loss of the relationship and money. 2. Quit