Reference no: EM132776330

Scenario based question:

John and Kim are two audit seniors working for Ford & Associates. Both started employment with the audit firm around the same time. They have mutual respect for each other; however, they have been highly competitive since they commenced work together. John has recently married and he and his wife are paying off their mortgage. Kim is single with no commitments. They have both been seniors for almost two years and are looking for promotion to audit supervisor. They are both aware that there is only one supervisor position available. John recently replaced Kim on the audit of Kent Ltd. The reason they were both given for the change was that another assignment had arisen with a long-time client of Kim's. Once John had replaced Kim on the Kent audit, he realised that the client had called the audit manager to say that they were not impressed with Kim, as he had missed a number of issues within the audit and was arriving at work late. The audit manager had not discussed these comments with either John or Kim. After going through the work that Kim had completed, John realised that Kim had performed an excellent job, identifying a number of issues that he thought he might possibly have missed. Furthermore, John suspects that Kim and the client had a personality conflict, and that the client has misled the audit manager. John realises that he can finish off the audit, resolve the issues and obtain a good review from this assignment, which would help him in the promotion stakes. He also knows that the audit manager is unlikely to bring the client's unsupported allegations to Kim's attention.

Problem 1: Assess the consequences.