The year end accounts for a local government authority have been prepared, and they will soon be adopted by the council, ready for audit. You are the head of social services finance, and you have become aware that some work has been performed by a consultant which has resulted in a proposal to close an elderly persons’ care home. The council members want to suppress this information from becoming public knowledge because there is a forthcoming by-election in the electoral division where the care home is located. The consultant has agreed not to submit the invoice for their fees, which are significant, until after the by-election. Normal accounting treatment would require the consultant’s fees to be included as an expense in the accounts. Additionally, the estimated costs of the potential closure may need to be included as a provision in the accounts. The members will not make their decision known until after the by-election, which will be after the audit has been completed and the opinion signed. 1. Identify and explain two ethical dilemmas that are present in the scenario. 2. Identify six (6) parties that are affected parties in the scenario. 3. Explain the possible actions you would take to remedy the ethical dilemmas in the scenario. Where necessary, use any legal protection(s) available to you.
The year end accounts for a local government authority have been prepared, and they will soon be adopted by the council, ready for audit. You are the head of social services finance, and you have become aware that some work has been performed by a consultant which has resulted in a proposal to close an elderly persons’ care home. The council members want to suppress this information from becoming public knowledge because there is a forthcoming by-election in the electoral division where the care home is located.
The consultant has agreed not to submit the invoice for their fees, which are significant, until after the by-election. Normal accounting treatment would require the consultant’s fees to be included as an expense in the accounts. Additionally, the estimated costs of the potential closure may need to be included as a provision in the accounts. The members will not make their decision known until after the by-election, which will be after the audit has been completed and the opinion signed.
1. Identify and explain two ethical dilemmas that are present in the scenario.
2. Identify six (6) parties that are affected parties in the scenario.
3. Explain the possible actions you would take to remedy the ethical dilemmas in the scenario. Where necessary, use any legal protection(s) available to you.
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