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    Unnah Hiyas Pascual Mendoza
    Barbara provides tax services for a general partnership with a 70%/30% split between two partners. The majority partner separately engages Barbara for individual tax services. The majority partner asks Barbara for confidential advice on debts, then requests "creative financing" involving the partnership without informing the minority partner. CPAs should not show preferential treatment to any partner. Barbara is in an awkward position of maintaining confidentiality or fulfilling her obligation to provide information to both partners. She risks a conflict of interest or lack of disclosure by keeping information from the minority partner. As an aspiring accountant, providing transparent, equal treatment to all parties is important to maintain ethical standards and public trust in the profession.

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    Barbara provides tax services for a general partnership with a 70%/30% split between two partners. The majority partner separately engages Barbara for individual tax services. The majority partner asks Barbara for confidential advice on debts, then requests "creative financing" involving the partnership without informing the minority partner. CPAs should not show preferential treatment to any partner. Barbara is in an awkward position of maintaining confidentiality or fulfilling her obligation to provide information to both partners. She risks a conflict of interest or lack of disclosure by keeping information from the minority partner. As an aspiring accountant, providing transparent, equal treatment to all parties is important to maintain ethical standards and public trust in the profession.

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    REACTION-PAPER

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    Barbara provides tax services for a general partnership with a 70%/30% split between two partners. The majority partner separately engages Barbara for individual tax services. The majority partner asks Barbara for confidential advice on debts, then requests "creative financing" involving the partnership without informing the minority partner. CPAs should not show preferential treatment to any partner. Barbara is in an awkward position of maintaining confidentiality or fulfilling her obligation to provide information to both partners. She risks a conflict of interest or lack of disclosure by keeping information from the minority partner. As an aspiring accountant, providing transparent, equal treatment to all parties is important to maintain ethical standards and public trust in the profession.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    196 views2 pages

    Reaction Paper

    Uploaded by

    Unnah Hiyas Pascual Mendoza
    Barbara provides tax services for a general partnership with a 70%/30% split between two partners. The majority partner separately engages Barbara for individual tax services. The majority partner asks Barbara for confidential advice on debts, then requests "creative financing" involving the partnership without informing the minority partner. CPAs should not show preferential treatment to any partner. Barbara is in an awkward position of maintaining confidentiality or fulfilling her obligation to provide information to both partners. She risks a conflict of interest or lack of disclosure by keeping information from the minority partner. As an aspiring accountant, providing transparent, equal treatment to all parties is important to maintain ethical standards and public trust in the profession.

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    PARAS, MICHELLE M.

    BSAC-2

    REACTION PAPER

    in

    Ethical Dilemma 2: Business Partners By    Suzanne M. Holl, CPA

    Barbara provides tax services for a general partnership client with two partners. One
    partner has a 70% share of the partnership, and the other has the remaining 30% share. The
    majority partner also engages Barbara separately to provide individual tax preparation services.
    Barbara has worked for the partnership and its majority partner for the past three years.

    One day, the majority partner requests Barbara's confidential advice and guidance
    regarding how to finance some large debts he has accumulated. Without hesitation, she
    provides him with some preliminary information. However, the partner later leaves her a voice
    message suggesting that she come up with some “creative financing” regarding the partnership
    to help deal with this debt. He also reminds her not to share any of his problems with the
    minority partner.

    CPAs should not provide preferential treatment to any partner in a general partnership.

    The request troubles Barbara and puts her in an awkward position: maintaining
    confidentiality could jeopardize her obligation to the minority partner.

    According to the article of Holl (2016), "CPAs should not provide preferential treatment
    to any partner in a general partnership” because it should be equal treatment for a majority or
    minority partner. Conflicts arise when CPAs perform services to two or more parties with
    conflicting interests, or where the CPA's or the firm's investments are at odds with those of the
    client. Barbara provides advice and guidelines to the majority partner for his/her debt. Still, he
    asked Barbara not to disclose it to the minority partner that caught her in this dilemma. She's
    aware that confidentiality is one of the ethical behavior, and also, as a professional accountant,
    she needs to provide others with the information they need. She can be sue for conflict of
    interest or lack of disclosure. She must be sensitive to public perceptions and expectations and
    must use informed judgment as well as adhere to professional standards such as legal counsel
    or a risk adviser.

    Many accountants face this kind of dilemma, especially when the conflict between
    ethics and pursuit of profit is more pronounced, but they choose to remain ethical to preserve
    the partnership image and reputation. In many situations, this decision results in more gain and
    a more significant market share because people value a partner that does the right thing and
    cares for all.

    As an aspiring accountant, I should act in ethical behavior because we must provide


    information not because it is our profession but also to help people become aware of their
    decisions, mainly if it lies to their future. We are responsible for serving the public in a certain
    way; we shouldn't act for our own satisfaction. In this article, I realize that we should work
    carefully. Not just because the other is more powerful, does it mean they are the ones we
    should follow. Therefore, we should give equal treatment to individuals.

    I recommend this work to others, especially to my fellow future accountants, because it


    may help them make decisions and be aware of different dilemmas they may face when we are
    officially CPAs. Also, to help them overcome a lot of pressure and not be scared in asking for the
    help of their co-workers. Opinions of other professionals are also important.

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