Luke

The usually upbeat Roberts was somber when Walker stepped into his office that afternoon. After she was seated, Roberts informed her that he had spoken with Jackie Vaughn several times during the past few days and that he had consulted with the three other audit partners in the office regarding a situation involving Walker. Roberts told Walker that Vaughn was very upset by the fact that she (Walker) had lied regarding the CPA exam. Vaughn had indicated that she would not be comfortable having a subordinate on future engagements whom she could not trust to be truthful. Vaughn had also suggested that Walker be dismissed from the firm because of the lack of Integrity she had demonstrated. After a brief silence, Roberts told a stunned Walker that he and the other audit partners agreed with Vaughn. He informed Walker that she would be given 60 days to find another job. Roberts also told Walker that he and the other partners would not disclose that she had been ”counseled out” of the firm if they were contacted by employers interested in hiring her.

Questions 1. In your opinion, did Vaughn overreact to Walker’s admission that she had been untruthful regarding the CPA exam? If so, how would you have dealt with the situation if you had been in Vaughn’s position? How would you have dealt with the situation if you had been in Roberts’ position? 2. Vaughn obviously questioned Walker’s personal integrity. Is it possible that one can fulfill the responsibilities of a professional role while lacking personal integrity? Why or why not?

4 Craig Schuster resigned as F&C’s CFO on January 1, 1993. Apparently, Schuster did not reveal to any third parties the concerns he had regarding F&C’s accounting records and previous financial statements. In your opinion, did Schuster have a responsibility to inform someone of those concerns following his resignation? Defend your answer.

5 Assume that you, rather than Fletcher Anderson, were F&C’s COO in December