Should whistle-blowing be encouraged? Why or why not? Imagine you are an investor in the company you are auditing, your fellow auditors are aware of this and are concerned that you are not able to maintain objectivity in the audit. What should you do?
Please discuss this with your peers and give an example of whistleblowing in this case and in other cases Using: Business & Professional Ethics for Directors, Executives & Accountants 8th Edition Leonard J. Brooks, Paul Dunn ISBN-10: 1305971450 ISBN-13: 9781305971455 © 2018 AND: GrumpyOldAccountants [Anthony Catanach] (April 26, 2013). “KPMG’s Insider Trading Scandal: A Watershed for the Auditing Profession? ”http://www.youtube.com/watch?v＝4qUo4nexfQM (Links to an external site.)Links to an external site. In this video, Dr. Anthony Catanach (Cary M. McGuire Fellow at the Center for Ethics in Financial Services, American College), author of the GrumpyOldAccountants blog (see www.grumpyoldaccountants.com (Links to an external site.)Links to an external site. ), use this video to emphasize the gravity of this offense, despite its relatively low monetary consequences, because of the seniority of the partner and his supervisory authority over—and ability to influence–so many other auditors (50) and over staff (500). Pettersson, Edvard (April 24, 2014). “Ex-KPMG Auditor London Gets 14 Months for Insider Trading.”
Bloomberg News accessed at http://www.bloomberg.com/news/2014-04-24/ex-kpmg-auditor-london-gets-14-months-for-insider-trading.html (Links to an external site.)Links to an external site. on September 23, 2014. This article describes the sentence handed down to Scott London, a former senior audit partner at KPMG, for leaking confidential information to Bryan Shaw who, with it, made more than a million dollars. Snyder, Riley (June 2, 2014). “Bryan Shaw sentenced to prison in KPMG insider trading case.” Los Angeles Times: Business, accessed at http://www.latimes.com/business/la-fi-insider-sentencing-20140603-story.html (Links to an external site.)Links to an external site. on September 23, 2014.