I-CURRENT SITUATION Mission Provide auditing services nationally Policies Code of ethics : provide auditing services in adherence to high ethical standards II-EXTERNAL ENVIRONMENT TASK ENVIRONMENT ÷ Industry-specific common illegal practices : to report employee payments as individual contractor payments to escape from payroll taxes.
÷ CompanyÃÂs in this industry sets pressure on CPA firms to ignore such practices in exchange of customer loyalty.
III-INTERNAL ENVIRONMENT CORPORATE CULTURE The CPA firm has a well-defined and clearly stated culture. But the company obviously displays a lack of conformisation among its staff. Management applies contradictory policies inside departments. This statement is first explicited by the managerÃÂs inability to give Sue a clear answer to her problem that directly relates to the companyÃÂs code of ethics.
IV-ANALYSIS OF STRATEGIC FACTORS (SWOT) A-SITUATION ANALYSIS Strengths & Weaknesses ÷ Comply with managerÃÂs recommendations (S) ÷ Comply with the departmentÃÂs common procedures (S) ÷ maintain coworking relationship perenity (S) ÷ preserve manager and coworkers against problems (S) ÷ Sue keeps the account (S) ÷ Contradict with her individual CPA responsibilities (W) ÷ Act in contradiction to the the companyÃÂs code of ethics (W) ÷ Act in contradiction with the principles of àdistributive justice à(W) Opportunities & Threats ÷ Compliance with the industry common procedures (O) ÷ No fear of losing a customer (O) ÷ Keep customer satisfaction (O) ÷ Set CPA firm in a position of cautioning customer illegal practices (T) ÷ Exposes the customer to legal problems (T) ÷ Threatens the interests of the customer firmÃÂs stockholders or owners (T) ÷ Can potentially set the company as the party of the customerÃÂs practices (T) B-REVIEW OF MISSION & OBJECTIVES Control and reinforce adherence to code of ethics at management and team levels.
V-RECOMMENDED STRATEGY Sue should first report this practice in her audit and...