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Giles and Rages

In: Business and Management

Submitted By avior20
Words 2283
Pages 10
1. Relevant Facts:

* Ed Giles (35) is a Partner Accountant at Saduga & Mihca, a medium sized accounting firm. * Susan Regas (25) is a senior accountant at the same accounting firm as Giles. * Giles and Regas have been dating for the past four months despite the firm’s policy, which prohibits employees in different ranks to date. * The policy states that if such a relationship will lead to marriage, one of the ?? * The above couple has not declared their romantic relationship and is acting in a discreet manner, despite the policy. * Most of the firm’s staff knows about Giles and Regas’ relationship, but have not reported it. The partners of the firm are oblivious to the fact. * Currently, Giles is a supervising partner for one of the firm’s biggest clients, CAA industries. Coincidently, Regas was assigned to audit team of the same client. * Junior staff noticed the two were spending time together during workdays. * Ruth Revilo, Regas friend, tried to persuade her to end the relationship. * Regas suggested to Giles that they separate at least until the audit of CAA is complete. * Regas and Giles met in a public place and were spotted by the CAA Industries’ controller, Mark Sax, who started to suspect the integrity of the audit. * Sax contacted Herb Morris, the Managing Partner at the firm and explained the situation. When the two met, Sax expressed his suspicions that the romantic relationship might affect the audit process negatively. Morris promised to investigate.

2. Framing the Ethical Issue:
In the case of Giles and Regas we see a variety of ethical issues including conflict of interests, integrity, credibility, and more. These ethical issues tie into one primary ethical problem. More specifically, the case demonstrates a conflict of interests created due to a romantic relationship between members…...

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