Week 8 Acc 260
ACC/260 Week 8 Individual
The situation in “Locker Room Talk”, centers on Albert Gable, a partner in a CPA firm. Mr. Gable took on a married couple, Larry and Susan Wilson, as clients for financial planning, and as he worked their case he became their personal friends. Albert knew that their marriage had some problems, and as he was auditing a bank, which he did annual audits for, he discovered some discrepancies in the information that the Wilson’s gave him and the information that the bank had in loan records. Mr. Gable spoke to a loan officer at the bank, who was friends with Mr. Wilson, and was informed that he thought that Mr. Wilson was preparing to leave his wife and take all of their money with him. Albert has a major dilemma here, both of the Wilson’s are financial planning clients, and he performs audits yearly for the bank, and was informed that the information discovered about Mr. Wilson’s plans was to remain confidential by the loan officer. This is a case of conflict of interest, because he cannot perform his duties to all of the stakeholders without neglecting his duties to at least one.
As we examine Albert’s dilemma we have to examine the stakeholders involved, first of all there is Mr. Gable, who has a financial stake via commission, the friendship of the Wilson’s, and his reputation as a CPA partner. Mr. Gable’s firm has its reputation at stake, if it is discovered that a partner obtained and used information that was private, as well as was involved in a conflict of interest, the firm’s reputation could be irrevocably harmed. Mr. Wilson has planned for his future, which he apparently doesn’t intend to spend with his wife, and could possibly lose the security he has been planning for himself, as well as legal troubles if he used fraudulent information in the loan documents. Ms. Wilson will likely lose her marriage, and be left without any money if her husband’s probable plan come to fruition, and lastly the bank could take damage to
The situation in “Locker Room Talk”, centers on Albert Gable, a partner in a CPA firm. Mr. Gable took on a married couple, Larry and Susan Wilson, as clients for financial planning, and as he worked their case he became their personal friends. Albert knew that their marriage had some problems, and as he was auditing a bank, which he did annual audits for, he discovered some discrepancies in the information that the Wilson’s gave him and the information that the bank had in loan records. Mr. Gable spoke to a loan officer at the bank, who was friends with Mr. Wilson, and was informed that he thought that Mr. Wilson was preparing to leave his wife and take all of their money with him. Albert has a major dilemma here, both of the Wilson’s are financial planning clients, and he performs audits yearly for the bank, and was informed that the information discovered about Mr. Wilson’s plans was to remain confidential by the loan officer. This is a case of conflict of interest, because he cannot perform his duties to all of the stakeholders without neglecting his duties to at least one.
As we examine Albert’s dilemma we have to examine the stakeholders involved, first of all there is Mr. Gable, who has a financial stake via commission, the friendship of the Wilson’s, and his reputation as a CPA partner. Mr. Gable’s firm has its reputation at stake, if it is discovered that a partner obtained and used information that was private, as well as was involved in a conflict of interest, the firm’s reputation could be irrevocably harmed. Mr. Wilson has planned for his future, which he apparently doesn’t intend to spend with his wife, and could possibly lose the security he has been planning for himself, as well as legal troubles if he used fraudulent information in the loan documents. Ms. Wilson will likely lose her marriage, and be left without any money if her husband’s probable plan come to fruition, and lastly the bank could take damage to