WGU D550 Task 1 Ethics of Accountant | Actual verified
study complete solutions | A+ Graded | Spring 2026 |
100% Correct
D550 Ethics for Accountant
Western Governors University
Part A
1. Ethical sensitivity
Barbara and her auditing team members found a deficiency in the client’s inventory system.
Still, only Barbara agrees to recognize that even a small misstatement may be an indicator of a
broader internal control issue. The client has failed to follow GAAP and overstated inventory,
and the audit firm will also violate GAAS by failing to report a possible material weakness. The
team members only focus on time pressure and personal consequences, but they need to
understand that ignoring the issue could compromise the reliability of the financial statements.
The AICPA Code requires all CPAs to perform services with integrity and due care. Intentionally
ignoring inventory mistakes without reporting them to upper management shows dishonesty
and negligence. Barbara should report the problem to the senior staff member, despite his strict
nature and adherence to the budget.
2. Ethical judgment
Under the AICPA Code of Professional Conduct, auditors are required to maintain integrity,
objectivity, and due care. By voting to ignore the issue, the team violates these principles and
subordinates professional judgment. The team is risking the firm facing legal issues for
negligence in verifying financial statement information, thereby resulting in client and third-
party reliance and possible economic loss. They need to set aside the deadline and the within-
budget goal and prioritize reporting the problem so the discrepancy can be properly
investigated.
3. Ethical motivation
study complete solutions | A+ Graded | Spring 2026 |
100% Correct
D550 Ethics for Accountant
Western Governors University
Part A
1. Ethical sensitivity
Barbara and her auditing team members found a deficiency in the client’s inventory system.
Still, only Barbara agrees to recognize that even a small misstatement may be an indicator of a
broader internal control issue. The client has failed to follow GAAP and overstated inventory,
and the audit firm will also violate GAAS by failing to report a possible material weakness. The
team members only focus on time pressure and personal consequences, but they need to
understand that ignoring the issue could compromise the reliability of the financial statements.
The AICPA Code requires all CPAs to perform services with integrity and due care. Intentionally
ignoring inventory mistakes without reporting them to upper management shows dishonesty
and negligence. Barbara should report the problem to the senior staff member, despite his strict
nature and adherence to the budget.
2. Ethical judgment
Under the AICPA Code of Professional Conduct, auditors are required to maintain integrity,
objectivity, and due care. By voting to ignore the issue, the team violates these principles and
subordinates professional judgment. The team is risking the firm facing legal issues for
negligence in verifying financial statement information, thereby resulting in client and third-
party reliance and possible economic loss. They need to set aside the deadline and the within-
budget goal and prioritize reporting the problem so the discrepancy can be properly
investigated.
3. Ethical motivation
