Case 2.

3
Eleni Anastasova
The situation that is presented in this case is very common in the
accounting field. In my opinion I strongly believe that whatever her boss is
saying to make her cooperate with his idea should not comfort her enough
to break the law and the accepted rules. The reason is because one way or
another the accounting maneuver can be discovered and it will cost her
more than her job; it might affect her career in the future and she could
possibly lose all of her rights to practice accounting.
According to Kohlbergs six stages of moral development Mrs. Cells
should be at stage 5. At this stage she would not want to violate the public
interest principle embedded in the professions ethical standards, which
values the public trust above all else. Considering all facts this should be
her behavior in response to her boss request. Going through each of the
stages her actions will be slightly different from one another, and they will
have to adjust according to the certain stage. In stage 1 Brenda would
judge what is right by her obedience to rules and authority, and she might
attempt the accounting maneuver if she believes there is little chance of
being caught and punished. In stage 2 her actions will be driven from her
self-interest. She might conclude that if she does not do what her boss
asks her to she might jeopardize her ability to move up the ladder within
the organization and possibly forgo personal rewards of salary increase,
bonuses, or both. In this stage everything is relative which means that
every person is free to pursue his or her individual interests. If the moral
development reaches stage 3 Brendas actions should not only be
motivated by the rules but also by seeking to do what is in the perceived
best interests of others, especially those in a family, peer group, or work
organization. At this stage Brenda will be seeking for other people to like
her and she might be reluctant to make the maneuver but agree to do so
not because it benefits her interest, but in response to the pressure
imposed by her supervisor, who claims that the company will lose a major
client and it will affect the companys profit in a major way. At stage 4 the
ethical development of Brenda should lead to actions that would try to
accomplish for her to serve her duties properly and to be of best interest
to society. As I stated in the beginning Brenda should be at stage 5, which
should lead to Brendas actions to be determined by the basic rights,
values and legal contracts of society. At this stage she would weigh the
consequences of performing an illegal action, including any penalties
against the ability to gain additional business. Brenda will conclude that
the harms of prosecution, fines, other sanctions, and the loss of ones
reputational capital are greater than the benefits. The final stage 6 states
that an ethical auditor would ask whether she would want other auditors
to insist on providing an allowance for the uncollectibles if they were
involved in a similar situation.
If I was in Brendas situation I would not go along with my boss
request because in the end I would be the one to face all the

Case 2.3
Eleni Anastasova
consequences. The important point to remember is that ethics is all about
how we act when no one is looking and even if it is possible to cover up
the fraud you have to live with the conscious that you committed a crime.
The moral of the story is that once you cross the line of any one of your
own principles it is the lowest point a human being can get to.