WGU D550 LEN1: Ethics for Accountants Task 1
|Passed on First Attempt |Latest Update with
Complete Solution
LEN1 Task 1: Analyzing Ethical Situations
Victoria Wilson
Western Governors University
D550: Ethics for Accountants
Dennis Trzeciak
03/18/2025
A. Narrative Applying the Thorne’s Integrated Ethical Decision-making Model
Barbara, a staff auditor, is caught in a moral dilemma while auditing a client’s inventory system.
After discovering that a small number of items were double counted, the audit team votes not to report
the issue to the senior staff member due to concerns over time, budget, and the potential for increased
audit costs. However, Barbara is still uncomfortable with the decision and wonders about the potential
consequences of leaving the matter unreported. The following situation will be analyzed using Thorne’s
Integrated Ethical Decision-making Model, which is a comprehensive approach that can help guide
Barbara’s decision-making process in addressing the deficiency in the client’s inventory system. The
model key components from Rest’s Four-Component Model of ethical decision-making include ethical
sensitivity, ethical judgment, ethical motivation, and ethical behavior.
Ethical Sensitivity
, Ethical Sensitivity is the ability to recognize a situation when an ethical issue is present and
requires a moral decision. In Barbara’s situation, she notices an error in the client’s inventory system
where some items were counted twice. Although it appears insignificant, she worries as she considers
the possibility of more significant issues with the client’s accounting practices. This shows that Barbara is
aware of the potential ethical implication of failing to report the issue. She can distinguish between
inventory discrepancy and keeping the integrity of the audit process. Barbara’s ethical sensitivity is
crucial because it allows her to identify a potential problem in the first place, unlike her colleagues.
Ethical Judgment
Ethical Judgement involves evaluating the situation and figuring out the right course of action
when faced with an ethical issue. In this case, Barbara considers her options: inform the senior staff
member about the deficiency or ignore the issue to avoid causing delays and added audit costs.
Withholding information about the inventory issue from the senior staff member may result in an
unethical outcome. Barbara’s judgment tells her that even minor discrepancies in financial reporting are
important, especially in a professional context where accuracy and transparency are crucial. Not
reporting the deficiency could do reputation damage to the audit firm, potential regulatory
consequences, and undermine the integrity of the audit. Barbara’s ethical judgment is consistent with
her professional duties, including compliance with auditing standards and regulations that prioritize
transparency and accountability.
Ethical Motivation
Ethical Motivation refers to the willingness to act on one’s ethical judgment, even in the face of
opposition or personal consequences. In Barbara’s case, her ethical motivation is grounded in a desire to
do what is right, even if it goes against the consensus of the team. She recognizes the dangers of not
addressing the issue, which could cause potential damage to the audit process, the firm’s reputation,
and the client’s financial integrity. While her colleagues focus on time and budget constraints, Barbara’s
duty is to maintain the ethical standards of the auditing profession. Her motivation is driven not by
personal gain or avoidance of punishment, but by a sense of professional duty to ensure the accuracy of
|Passed on First Attempt |Latest Update with
Complete Solution
LEN1 Task 1: Analyzing Ethical Situations
Victoria Wilson
Western Governors University
D550: Ethics for Accountants
Dennis Trzeciak
03/18/2025
A. Narrative Applying the Thorne’s Integrated Ethical Decision-making Model
Barbara, a staff auditor, is caught in a moral dilemma while auditing a client’s inventory system.
After discovering that a small number of items were double counted, the audit team votes not to report
the issue to the senior staff member due to concerns over time, budget, and the potential for increased
audit costs. However, Barbara is still uncomfortable with the decision and wonders about the potential
consequences of leaving the matter unreported. The following situation will be analyzed using Thorne’s
Integrated Ethical Decision-making Model, which is a comprehensive approach that can help guide
Barbara’s decision-making process in addressing the deficiency in the client’s inventory system. The
model key components from Rest’s Four-Component Model of ethical decision-making include ethical
sensitivity, ethical judgment, ethical motivation, and ethical behavior.
Ethical Sensitivity
, Ethical Sensitivity is the ability to recognize a situation when an ethical issue is present and
requires a moral decision. In Barbara’s situation, she notices an error in the client’s inventory system
where some items were counted twice. Although it appears insignificant, she worries as she considers
the possibility of more significant issues with the client’s accounting practices. This shows that Barbara is
aware of the potential ethical implication of failing to report the issue. She can distinguish between
inventory discrepancy and keeping the integrity of the audit process. Barbara’s ethical sensitivity is
crucial because it allows her to identify a potential problem in the first place, unlike her colleagues.
Ethical Judgment
Ethical Judgement involves evaluating the situation and figuring out the right course of action
when faced with an ethical issue. In this case, Barbara considers her options: inform the senior staff
member about the deficiency or ignore the issue to avoid causing delays and added audit costs.
Withholding information about the inventory issue from the senior staff member may result in an
unethical outcome. Barbara’s judgment tells her that even minor discrepancies in financial reporting are
important, especially in a professional context where accuracy and transparency are crucial. Not
reporting the deficiency could do reputation damage to the audit firm, potential regulatory
consequences, and undermine the integrity of the audit. Barbara’s ethical judgment is consistent with
her professional duties, including compliance with auditing standards and regulations that prioritize
transparency and accountability.
Ethical Motivation
Ethical Motivation refers to the willingness to act on one’s ethical judgment, even in the face of
opposition or personal consequences. In Barbara’s case, her ethical motivation is grounded in a desire to
do what is right, even if it goes against the consensus of the team. She recognizes the dangers of not
addressing the issue, which could cause potential damage to the audit process, the firm’s reputation,
and the client’s financial integrity. While her colleagues focus on time and budget constraints, Barbara’s
duty is to maintain the ethical standards of the auditing profession. Her motivation is driven not by
personal gain or avoidance of punishment, but by a sense of professional duty to ensure the accuracy of
