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Neko [114]
2 years ago
6

Madrid and Berne is a top-rated accounting firm with offices in Phoenix and Tucson. Madrid and Berne wanted to provide bookkeepi

ng as an additional service to its clients. It hired Joan Newman Business Services, with offices in Phoenix, Flagstaff, Tucson, and Yuma, to perform contract bookkeeping services for Madrid and Berne clients who requested and needed such services. Madrid and Berne entered into an independent contractor agreement with Joan Newman Business Services. The contract stated that Joan Newman is an independent contractor and agrees that her business is an independent contractor of Madrid and Berne.
After entering into the agreement, Joan worked solely on jobs assigned by Madrid and Berne and was paid a commission for the work. The commission was based upon the fees determined by Madrid and Berne and paid by the clients to Madrid and Berne. Joan was paid on a weekly basis. She used available and unused office space at Madrid and Berne, along with Madrid and Berne's equipment and supplies. This arrangement made it easier for clients to utilize Joan's services and be familiar with the offices. Madrid and Berne reviewed Joan's work and returned faulty work to her for corrections before delivering the completed work to the clients.


1. One ethical issue or dilemma the scenario presents for Madrid and Berne and strategies for addressing the issue or dilemma.
2. One ethical issue or dilemma the scenario presents for Joan Newman and strategies for addressing the issue or dilemma.

250-500 words discuss the following from a Christian worldview perspective with APA format citation
Business
1 answer:
Scilla [17]2 years ago
6 0

Answer:The ethical issue for Madrid and berne is allowing Joan used their office, equipment,supplies and have unrestricted access to their customers.

The ethical dilemma is the manner in which Joan fees are paid and determined.

Explanation:Joan presence in Madrid and berne office using all their resources makes him look like an employee or staff of the company rather than an independent contractor that he is.if he does anything wrong with Madrid and berne customer ,Madrid and berne will be vicariously liable i.e they cannot deny knowledge of it even. If it is not part of assigned to him.having access to all Madrid and berne customer may definitely lead to the and the customer will have a feeling he is a staff of Madrid and berne .

The ethical dilemma for joan is his fees ,he is being paid on standard determine by Madrid ,fees paid to accountant should be moderate and both party should determine it ,this is to strengthen the objectivity and Independence of Joan,as it is Joan work will be influenced greatly by Madrid and berne especially for their high worth customers.even when the records are not okay,they won't want to lose such customer and may influence Joan to write favorable report,the client will also easily bribed joan for favorable report . Independence of Joan is eroded ,the fees should be co-determind by Joan and Madrid and berne

Thanks

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