The ethical dilemma for Brenda in "The Tax Return" case can best be described as a:
A)Conflict between loyalty to one's supervisor and doing the right thing
B)Conflict between reporting an item of taxable income and ignoring it
C)Lack of independence due to ties to the client entity
D)All of the above

Question

Quizplus · Accepted Answer

Brenda's ethical dilemma arises from her conflict between loyalty to her supervisor (who is also her friend) and her obligation to report the item of taxable income. She is aware that her supervisor has deliberately chosen to ignore the income in question, but Brenda feels that it is her professional duty to report it. This conflict is not related to a lack of independence since Brenda is not the auditor of the client entity. Therefore, the correct answer is A.

The Ethical Dilemma for Brenda in "The Tax Return" Case