Please discuss the following case from Chapter 10 of Hill\’s Just Business, including responding to the questions at the end of the case. Your initial posting is due by midnight Thursday, and at least one response posting is due by midnight Saturday.
Gail works as an auditor for a national accounting firm. One of her clients, Alias Manufacturing Corporation (AMC), has performed well on the stock market for almost five years. During her audit, however, Gail discovers that AMC unintentionally under-reported some of its liabilities over the past year and is about to be hit with a major class-action lawsuit. She projects that AMC stock values may fall by as much as 35 percent within the next six months.
One weekend Gail drives home to visit her aging parents. As their only child, she feels particularly responsible for their well-being. Stuck in the lower middle class on a fixed income, they are very excited to inform their daughter that they have recently invested half of their retirement funds in AMC. Stunned, Gail ponders what to do next.
1. What information should Gail conceal? Disclose? To whom?
2. Are there any creative solutions for Gail\’s ethical dilemma?
