WGU D550 TASK 1 ETHICAL DECISION-MAKING IN
AUDITING| LATEST UPDATE | WITH COMPLETE
SOLUTIONS
Grammarly
LEN1 Task 1: Analyzing Ethical Situations
Benedict Banahene
Western Governors University
Ethics for Accountants — D550
Februray 4 2026
, Barbara's case presents an ethical dilemma common in the accounting profession, where
professional standards conflict with time constraints, peer pressure, and budgetary constraints.
This paper draws on Thorne’s Integrated Ethical Decision-Making Model, grounded in
Rest’s Four Component Model of Morality, and the Giving Voice to Values framework to
analyze ethical issues and determine an appropriate course of action.
Application of Thorne’s Integrated Ethical Decision-
Making Model
Thorne’s Integrated Ethical Decision-Making Model builds upon Rest’s Four Component Model
by incorporating moral development and virtue into ethical reasoning and behavior (Thorne,
1998; Rest, 1986). The four components—ethical sensitivity, ethical judgment, ethical
motivation, and ethical behavior—are applied to the audit scenario involving Barbara.
Ethical Sensitivity
Ethical sensitivity is the ability to recognize that a situation has ethical implications and affects
others' welfare (Rest, 1986). Barbara demonstrates ethical sensitivity by recognizing that the
double-counting of inventory items, while quantitatively minor, represents a deficiency in the
client's internal control system. She understands that neglecting this issue could compromise
the audit's reliability and mislead audit leadership.
Barbara also recognizes that the audit team's unwillingness to report the issue is driven by fear
of blame and budget overruns rather than professional judgment. Her concern that the
deficiency may indicate broader weaknesses in the client's accounting procedures further
reflects her awareness of the ethical and professional implications involved.
Ethical Judgment
Ethical judgment involves identifying and evaluating alternative courses of action to determine
which is most ethical (Rest, 1986). Barbara considers several options:
● Remaining silent to avoid conflict and remain within budget.
●
● Report the inventory deficiency to the senior staff member.
●
● Recommending additional audit procedures to determine whether the issue is more
extensive.
●
AUDITING| LATEST UPDATE | WITH COMPLETE
SOLUTIONS
Grammarly
LEN1 Task 1: Analyzing Ethical Situations
Benedict Banahene
Western Governors University
Ethics for Accountants — D550
Februray 4 2026
, Barbara's case presents an ethical dilemma common in the accounting profession, where
professional standards conflict with time constraints, peer pressure, and budgetary constraints.
This paper draws on Thorne’s Integrated Ethical Decision-Making Model, grounded in
Rest’s Four Component Model of Morality, and the Giving Voice to Values framework to
analyze ethical issues and determine an appropriate course of action.
Application of Thorne’s Integrated Ethical Decision-
Making Model
Thorne’s Integrated Ethical Decision-Making Model builds upon Rest’s Four Component Model
by incorporating moral development and virtue into ethical reasoning and behavior (Thorne,
1998; Rest, 1986). The four components—ethical sensitivity, ethical judgment, ethical
motivation, and ethical behavior—are applied to the audit scenario involving Barbara.
Ethical Sensitivity
Ethical sensitivity is the ability to recognize that a situation has ethical implications and affects
others' welfare (Rest, 1986). Barbara demonstrates ethical sensitivity by recognizing that the
double-counting of inventory items, while quantitatively minor, represents a deficiency in the
client's internal control system. She understands that neglecting this issue could compromise
the audit's reliability and mislead audit leadership.
Barbara also recognizes that the audit team's unwillingness to report the issue is driven by fear
of blame and budget overruns rather than professional judgment. Her concern that the
deficiency may indicate broader weaknesses in the client's accounting procedures further
reflects her awareness of the ethical and professional implications involved.
Ethical Judgment
Ethical judgment involves identifying and evaluating alternative courses of action to determine
which is most ethical (Rest, 1986). Barbara considers several options:
● Remaining silent to avoid conflict and remain within budget.
●
● Report the inventory deficiency to the senior staff member.
●
● Recommending additional audit procedures to determine whether the issue is more
extensive.
●
