Case 1-2 Giles and Regas
4/21/2015

1.Facts
Ed Giles, 35 year old CPA and a partner at Saduga & Micha accounting firm
Susan Regas, 25 year old senior accountant in the same firm
Giles and Regas been dating for four months
They well know firm policy does not permit different ranks to date
Most of the staff seem to know about their relationship
Regas was assigned to audit CAA industry under Giles supervision
Giles and Regas spending personal time during workday
Ruth Revilo warns Regas not to jeopardize Regas future by dating Giles
Gile and Regas goes to farewell dinner to put relationship aside until CAA audit ends
Mark Sax, CAA controller saw Giles and Regas at dinner
Mark brings up his concern to Herb Morris, the managing partner
Mar questions the audit efficiency and billing
 Morris promises to get back to Mark after investigation

2. Ethical Issue
Giles and Regas relationship lead to conflict of interest and damaging the reputation of the firm.

3.Stakeholders and Obligation
CAA Management and Mark Sax. They are the stakeholders expect auditors to carryout their service with due professional care within a constrained time period. Giles and Regas here spends their personal time during workday. They also have the potential to cover up for each other if one or both of them screw up on audit because they were not focusing on their performance.
Saduga & Micha and Herb Horris and all firm employee. Giles and Regas behavior represents their firm. Therefore, their action directly relates to firms credibility and reputation which affects everyone in the firm such as Ruth Revilo and Herb Horris. Other professional in the accounting industry may view the firm as non disciplined and low ethics. Ruth or Herb may have a hard time to find a job in the future because of the firms low reputation.