Jason Tybell is a CPA who graduated from the university with bachelor degree in accounting and has been working for a professional accounting company named Rodger&Philips for two years with high evaluations from his seniors. •Although, he has good performance score, he isn’t asked to work on the current audits of two clients that he worked on previous year. •Jason has a meeting with his mentor, William Jackson, to talk about this unusual incident. •Before the meeting, Jackson is informed that one more complaint about Jason is received from the third client.
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•In the meeting, Jackson wants to know the reason of this inappropriate behavior and tries to get logical answers from Jason. •Jason says that he is teasing the client and he thinks that the client has a sense of humor to understand that joke. 3. Identify the stakeholders and obligations: •Jason Tybell: He is the auditor who has to have and use interpersonal skills such as good communication skills, the ability to get along with clients in a respectful way, whics is as important as having technical knowledge.
•William Jackson: He is the mentor who should evaluate the situation of Tybell fairly and with different perspectives, such as the reasons of getting high scores from performance evaluations, the reasons of not to be asked from the clients, the chance of improvement of the behaviors of Tybell etc. •Clients: They deserve to be behaved respecfully by the auditors that they work with. •Rodgers&Philips: Accounting company that should be responsible for the behaviors of its employees (auditors) to the clients as well as their works.
Moreover, it should have a fair performance evaluation system. 4. Identify the relevant accounting ethics standards involved in the situation: •Respect: All people should be treated with dignity and should be judged based on their character. •Caring: The essence of caring is empathy. Caring and empathy support each other and enable a person to put herself in the position of another. •Due professional care: carrying out professional responsibilities with concern for the best interests of those for whom the serviceswere performed and inaccordance with public interest.
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•Professional behavior: A professional accountant should comply with relevant laws and regulations and should avoid any action that discredits the profession. 5. Identify the operational issues: •What are the deficiciencies in performance evaluation system? How did Jason Tybell get high scores fromhis seniors? •Is the criteria for employee termination defined in the company? Can they easily fire him for his behaviors to the clients even he got high evaluation scores?
•Is there any improvement or caution process for the employees who need to improve their qualifications or replace some inappropriate treats with the appropriate ones? 6. Identify the accounting and auditing issues: •Since the case is not too much related to accounting issue, comments will be limited. 7. List all the possible alternatives that you can or cannot do: •Do nothing •Fire Jason Tybell •Develop a new evaluation system for the employees of the company 8. Compare and weight the alternatives:
•Do nothing: It is not appropriate treat for an auditor or audit company who/that is expected to exercise due care and acting in accordance with professional behavior. Moreover, clients deserve to be treated with dignity. •Fire Jason Tybell: Firing Jason Tybell will not fix the deficiency of the performance evaluation system of the company. Besides, the company will lose one of technically qualified employees who has a chance to be potential succesful partner in near future.
•Develop a new evaluation system for the employees of the company: It can be concluded that there are some deficiencies in performance evaluation system of the company. Although Jason Tybell has received high scores from his seniors, he is not asked by some of his clients because of some inappropriate behaviors and comments. This showes that the criteria that used for the evaluate of the employee is not well defined and we can say that the evaluation system is mostly based on technical knowledge, rather than interpersonal skills.
Since having interpersonal skills is as important as having technical knowledge for an auditor new performance evaluation system should be designed to cover both specifications. 9. Decide on a course of action: •Develop a new evaluation system for the employees of the company: By doing this, Hutton can exercise due professional care, shareholders are provided with reliable financial information, investors/creditors can invest their money according to correct financial data, and the company will have correct financial reporting.
Reflect on your decision: •The worst case scenario, Hutton will lose his client, since he refused to accounting method used by the company. However, in any case he won’t his professional reputation and he will have exercised due care. He and his audit company won’t be sued because of departuring from accounting principles. His family,friends and colleagues will be proud of him.See More on Auditing