Overview
Dialogue Post Week 2
The Case:
Juan, a CPA on an audit team, is under pressure to complete an audit quickly. He notices a discrepancy in the inventory count but his team votes to conceal this from their supervisor. A team member suggests reviewing fewer invoices to save time, and the team decides to under-report the actual hours spent on the audit to keep their supervisor happy. This situation presents a clear conflict between professional standards of due diligence and the internal pressure to meet deadlines.
The Dialogue Question:
In the parable of the talents (Matthew 25:14-30), Jesus commends the faithful servants who diligently managed their master's money, while rebuking the one who did nothing with it. This parable underscores the importance of being a diligent and faithful steward.
In the case of Juan and his audit team, explain how their actions, such as reducing the sample size and under-reporting hours, are a failure of due diligence. How does this behavior demonstrate a lack of faithful stewardship in their professional roles? Using Kohlberg’s stages of moral development, analyze what Juan should do, and explain how his decision to act diligently and truthfully, even against his team's wishes, aligns with the biblical principle of faithful stewardship.
Note: 200 words or fewer must include a minimum of two academic references
Dialogue Post Week 2 By Raquel
The team did not carefully review the financial records, which could result in inaccurate statements that mislead investors. This behavior violates the Institute of Management Accountants’ ethical principles of honesty and responsibility (Mintz, 2022, p. 30).
Furthermore, the team, acting in their professional roles, chooses to work together to hide discrepancies, which shows a lack of diligence. Not reviewing all the invoices and withholding information reflects a lack of integrity, while underreporting hours during an audit is dishonest. Poor asset management harms the company and contradicts (Matthew 25:14-30).
Juan should strive to reach the Post-Conventional Level in Kohlberg's stages by adhering to universal ethical principles, even when others pressure him to conform. As a CPA, Juan needs to focus on accuracy and honesty in financial reporting. To address this, he should speak up about the inventory issue, recommend a full audit, and ask his supervisor for more time to address it. If his concerns are not addressed, he should keep a record to protect his ethical duties (Mintz, 2022).
In parallel, the Bible teaches that faithful stewardship means managing God’s gifts well to honor Him and help others. When people recognize God's call, they can grow as leaders by gaining job training and building new skills (Birch, 2002).
References
Birch, B. C. (2002). Leadership as stewardship. A Publication of the General Board of Higher Education and Ministry and The United Methodist Publishing House, 22(4).
Cafferky, M. E. (2015). Business ethics in biblical perspective: A comprehensive introduction. Downers Grove, IL: InterVarsity Press.
King James Bible. (2017). King James Bible Online. https://www.kingjamesbibleonline.orgLinks to an external site./ (Original work published 1769)
Mintz, S. M. (2022). Ethical Obligations and Decision-Making in Accounting: Text and Cases: 2025 Release. McGraw-Hill Higher Education (US). Available from: VitalSource Bookshelf.