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 ÃÂ· Industry-specific common illegal practices : to report employee payments as individual contractor payments to escape from payroll taxes.
ÃÂ· 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 ÃÂ· Comply with managerÃÂs recommendations (S) ÃÂ· Comply with the departmentÃÂs common procedures (S) ÃÂ· maintain coworking relationship perenity (S) ÃÂ· preserve manager and coworkers against problems (S) ÃÂ· Sue keeps the account (S) ÃÂ· Contradict with her individual CPA responsibilities (W) ÃÂ· Act in contradiction to the the companyÃÂs code of ethics (W) ÃÂ· Act in contradiction with the principles of ÃÂ distributive justice ÃÂ (W) Opportunities & Threats ÃÂ· Compliance with the industry common procedures (O) ÃÂ· No fear of losing a customer (O) ÃÂ· Keep customer satisfaction (O) ÃÂ· Set CPA firm in a position of cautioning customer illegal practices (T) ÃÂ· Exposes the customer to legal problems (T) ÃÂ· Threatens the interests of the customer firmÃÂs stockholders or owners (T) ÃÂ· 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...