Question Description

Skip step number 6 in the decision making model ……………………………

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Imagine that you are a partner in the CPA firm North, South, East, West, LLP. You
personally, and your firm generally, have developed a specialty area in working for hot
yoga studios.
It is common for larger CPA firms to provide a service to smaller CPA firms where the
larger firm will provide staffing in the event that the smaller CPA firm has an
emergency. We call this continuity. Your firm is the continuity partner for a sole
practitioner named Penny Patrol. Unfortunately for Penny, she was involved in a
motorcycle accident. She was hospitalized for a time, and is now in rehab. She is
expected to recover, but it could take another 2-3 months. The continuity service that
your firm is providing requires each of the five partners in your firm to work in Penny’s
office one day a week.
One of your recent clients, Hot-Hot-Hot, asked your firm to prepare a bid for
professional services last fall. The services included the normal tax, advisory, and
bookkeeping services. However, they also included consulting with regard to the
purchase of a hot yoga studio in another town. This studio is called Urth, Vind, and
Frrr. Hot-Hot-Hot informed you that they had accepted a competitor’s bid for the
professional services beginning January 1 of this year.
It is now Saturday. You worked in Penny’s office last Friday. One of her clients called
you and said he needed to talk with you, but could only give a few details as he was
pressed for time. You arranged a follow-up call for Monday. The client is Billy
Gruff. He operates a goat yoga studio called Scape Goat. Billy said that he was
concerned that goat yoga was a fad, and he needed help with the purchase of a hot
yoga studio in a “nearby” town. Your checked Penny’s records, and Scape Goat is
located in Flyby. The only two hot yoga studios within 75 miles of Flyby are Hot-Hot-Hot
and Urth, Vind, and Frrr.
You know many details about Hot-Hot-Hot’s business, at least through 2018. You also
know that they planned to buy Urth, Vind, and Frrr, but you do not know the status of
that acquisition. Urth, Vind, and Frrr has never been your client and you know no
details about their operations.
Required: Using the ethical decision-making model and virtue ethics, what should you
tell Billy when he calls back Monday? Consider whether it matters which hot yoga
studio Billy is interested in acquiring.

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Tags:
Virtue ethics

A1 Business and Technical College

decision making model

Ethical Decisions Framework

business continuity activities

utilitarian ethics perspective

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