Problem:

Charity Going Concern You are the newly hired controller for acharitable organization that is in trouble. The organizationHelping Hands assists disabled individuals with all aspect oflooking for and getting jobs. The organization has been strugglingfor the entire time of your employment. You are concerned thatHelping Hands can survive much longer. The recession has taken atoll on fundraising. Payroll was due and you delayed paying theutilities for as long as you could. The big problem is HelpingHands largest donor requires that he be provided quarterlyfinancial statements for him to continue making donations. In fact,you have not provided Gerald with statements for the last twoquarters. Gerald comes to see you and informs you that hisaccountant will not allow him to provide any more financialassistance until you provide him with financial statements. IfGerald could show his accountant that the organization was doingwell he could give them this quarters check. He needs the financialstatements that have been promised. You apologize that he has notreceived the statements yet and promise that he will have them nextweek.

Later, Don the executive director of Helping Hands visits youroffice. He realizes there is a problem but is thankful there isenough cash to get through another week. Don is sure that once youprovide Gerald the promised financial statements the donations willcontinue. Don realizes the financials do not look that good. Hesuggests leaving the debt to a major vendor off the financials. Donis a golfing buddy with the vendor’s president and the vendorCharles has offered to give the charity an official letterimmediately waiving the charities debt to his company, notpermanently, but just until you get past the cash crunch. Donassures you that it will keep the charity afloat and you wouldn’tbe doing anything illegal. Charles is fully authorized to do this,as a goodwill gesture to a worthy cause. Don is hoping that maybein the end Charles will actually cancel the debt. It’s apossibility.

UPDATED INFO: what is the ethical issue? what are thefacts? who are the stakeholders? any alternatives to solve thisissue? what would be the correct decision on this issue? using the8 step process to answer and using support from the AICPA, Explainwhat your options are (there are two).

The textbook and the code of ethics should give you theinformation you need to complete this assignment. Your paper shouldbe of the quality you would submit to the executive director or theboard, explain your decision in a factual business manner. -Recognizing Ethical Matters and making good decisions meansbeing familiar with the profession’s rules and regulations from theAICPA and the state board of accountancy.

To be effective, you need to know how to analyze a matter orsituation. One ethics decision making model contains 8 steps:

Step 1: Recognize the Ethical Issue – the ethical issue in thissituation

Step 2: Gather the Critical Facts – All the facts may not beinitially evident, make sure you have them all before making anydecisions.

Step 3: Identify the Stakeholders – Considering the alternativeswho will positively benefit or negatively be harmed by yourdecision or actions.

Step 4: Consider Alternatives – What are the various approachesthat can be taken to address this matter and resolve the ethicalconflict.

Step 5: Consider the Effect on Stakeholders – Consider how eachapproach is likely to affect the stakeholder.

Step 6: Consider Your Comfort Level – How comfortable are youwith each option, if discussed in public, how would it reflect onyour ethics.

Step 7: Consider Rules, Regulations and Laws – Are the optionsconsistent with the professional rules, regulations and laws?

Step 8: Make a Decision – Once you have considered all of theabove can you make a decision? Explain your decision and what themajor factors in why you consider this to be the best option. Makeyour argument convincing.