Reference no: EM133614045

While performing an audit on Mega Company, Stan Stalemate, a new auditor with one of the world's largest public accounting firms, learned of confidential and damaging financial information that will likely bankrupt the Mega Company.

Just days later, Stan's Aunt Hazel, an old widow and dear family friend, was visiting for the holiday. Aunt Hazel shared her good news at the dinner table that her son Walter recently was promoted to a high-ranking position with Mega Company. Aunt Hazel told everyone about Walter's terrific benefit plan which grants him the right to acquire Mega Company stock for a big discount price. Aunt Hazel announced that she plans to give Walter all her money to acquire Mega Company stock. Hazel said that she has been finding it difficult meeting her monthly bills since she lost her husband two years ago so she believes this investment strategy is her answer.

Hazel leans over to Stan at the dinner table and whispers, "What do you think Stan - good idea?"

1. Identify the ethical dilemma. Why should Stan be conflicted?

2. Identify the key actor(s) and stakeholders.

3. Identify at least three alternative courses of action that Stan could take. For each, clearly state the positive and negative consequences on the parties identified in step 2.

4. Offer a resolution. Step into Stan's shoes. What would you do? Could you defend your actions if the details of the case made the front page of the New York Times (NYT Test)?