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Identify the Ethiopia and legal issues of which Gerard needs to be aware 1. The fact that Grade’s department Is doing CPA duties and Investment advising Is a conflict of Interest and Is unethical because they are receiving extra money while doing this. Financial advice like this should come from someone who is unbiased. His employees could end up serving their interest at the expense of their clients causing a reduction in the quality of information given out to their clients and by doing this it leads the Spa’s down a road to making unethical decisions.
Gerard works for Trawlers Accounting and has for several years, but pressures from is wife’s high-risk pregnancy and changes In the accounting Industry have placed him in a difficult situation. Financial, emotional, and organizational pressures to which Gerard is exposed are issues. The issue of accounting firms going into the financial services industry has become prevalent. We saw such conflicts of interest arise in the fallout after the most recent Wall Street meltdown in 2008.
However, many of the large accounting firms have purposefully stayed away from this practice because of the potential conflict of Interest, as brought up In the scenario. Another issue in this case involves the question of what is Gerard going to do to pacify existing clients? What are the ramifications of unwittingly engaging in illegal activities because of either misinformation or lack of experience? Discuss the advantages and disadvantages of each decision Gerard has made and could make 2.
The decision to give balancing advice has allowed him to receive more income to help financially while his wife Vicky is on her unpaid leave. If he continues he could gain clients through word of mouth of current clients if he is making them money. Gerard can also lose one of his clients CENT mutual funds if his people don’t stop recommending mutual funds from Trawlers (a company they are auditing). Gerard could recommend to his people to advise CENT mutual funds but by doing this It could either make money or lose depending on how CENT funds are performing.
Identify the issues of which Victoria needs to be aware antitrust laws by making their prices so low that they are destroying the competition. It sounds like they are trying to establish a monopoly and not following the laws of overprotective competition. It also sounds like they are doing some sort of espionage by getting information from the players bankers. Discuss why the federal government has determined that monopolies are not in the publics best interest 3. The government wants competition between companies.
When there is competition it helps lower prices for the consumer. If a company controls the market they can set their own prices and not have to worry about any competition. If Monopolies were allowed companies could lower the amount of product available and in turn raise prices due to a lower availability. Some utility companies have been insider monopolies in certain areas when they are the sole provider in a region. Identify the ethical and legal issues of which Jim needs to be aware 1.
Jim needs to be aware that Just because this is what happened in the past, it doesn’t mean that he has to follow what everyone else has done. His decision will define his moral values. It would be ethical wrong to continue to pollute the water and bribe officials to keep their mouth shut. If this was found out and it was known that Jim was aware of what was going on he could face severe legal troubles. Identify the pressures that have roughs about the ethical and legal issues at hand 3.
Jim is being told that this is what has been going on for a long time and that the last manager that bucked the system lost his Job. If Jim refuses to pay there could be large fines and he could lose him Job anyway. This is most likely the main employer of the small town nearby and would probably destroy it if he didn’t keep quiet about what was going into the river. His wife also wants to get out of the area so if he doesn’t do anything about the illegal dumping and bribes he could soon be somewhere else which would make her happier