Internal auditing
Gerald Ott has a duty to point out noncompliance with GAAP in his position as internal audit manager. The fact that Habbe would like to terminate employees whose pension benefits have not yet vested is not ethical. Ott should have reservations about the entity he is auditing, and should not base his decisions on the unethical behavior of others. In response to Habbe, Ott should document all responses to questions raised by Habbe including Habbe’s own thoughts, and be ready to justify/explain his decisions as an internal auditor.
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- Assignment status: Resolved by our Writing Team
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