WGU D550 Task 1|Latest 2025 Update with complete solution.
D550 – Ethics for Accountants
Name – Student ID
Task 1
A. Ethical Decision-Making Model
Narrative
1. Identify the ethical and professional issues (ethical
sensitivity):
- GAAS
• A deficiency in the client’s inventory system was found which
lead to the double counting of some inventory items.
• The amounts are not large, but GAAS requires these deficiencies
be reported to management so that action can be taken to
correct the problem in the system that led to the double
counting.
- Stakeholders/Interests
• The client
• The auditors
, • The investors
- Ethical/Professional Standards
• Due Care: Auditors need to be professional and thorough when
performing their duties.
• Integrity: Barbara should not allow the objections of the
majority, time pressures, personal embarrassment, or other
factors, persuade her to act against her own professional
judgment.
2. Identify and evaluate alternative courses of action
(ethical judgment):
- Legal Issues:
• By violating GAAS and ignoring problems, the audit company
may be exposed to legal consequences, especially if the
deficiency turns out to be more serious than originally thought.
- Alternatives/Analysis
• Go along with the majority:
o Barbara feels uncomfortable with this decision and knows
she would be violating GAAS by deferring her judgment to
D550 – Ethics for Accountants
Name – Student ID
Task 1
A. Ethical Decision-Making Model
Narrative
1. Identify the ethical and professional issues (ethical
sensitivity):
- GAAS
• A deficiency in the client’s inventory system was found which
lead to the double counting of some inventory items.
• The amounts are not large, but GAAS requires these deficiencies
be reported to management so that action can be taken to
correct the problem in the system that led to the double
counting.
- Stakeholders/Interests
• The client
• The auditors
, • The investors
- Ethical/Professional Standards
• Due Care: Auditors need to be professional and thorough when
performing their duties.
• Integrity: Barbara should not allow the objections of the
majority, time pressures, personal embarrassment, or other
factors, persuade her to act against her own professional
judgment.
2. Identify and evaluate alternative courses of action
(ethical judgment):
- Legal Issues:
• By violating GAAS and ignoring problems, the audit company
may be exposed to legal consequences, especially if the
deficiency turns out to be more serious than originally thought.
- Alternatives/Analysis
• Go along with the majority:
o Barbara feels uncomfortable with this decision and knows
she would be violating GAAS by deferring her judgment to
