The ethical issues that been raised is
a. Lee confronts three related ethical issues. The first is that Our Little Secret’s past tax practices have been both unethical and illegal. Lee cannot be involved in such practices or, if she is in a position of responsibility, allow them to continue. "Second, Lee has good reason to question the basic integrity of her prospective employer.
Is Simon’s statement that “no one knows how this all got started, or who was responsible” really true? After all, Simon is suggesting that the fraud continue after Amy comes “on board.”" Third, there is the issue of confidentiality. Both CPAs and CMAs are ethically bound to treat as confidential all information obtained in the course of their professional activities. This means that the accountant should not disclose confidential information without the employer’s (or client’s) permission.
"Technically, Our Little Secret is neither Lee’s employer nor client. Nonetheless, these authors would consider a job interview as part of an accountant’s “professional activities.” Thus, we believe that Lee should treat what she has learned about the company’s inventory “problem” as confidential information. Thus, she should not take it upon herself to notify the Inland Revenue Department or any other third party about the company’s actions."

b. The solution proposed by Simon is unacceptable. To knowingly understate inventory in a profits tax return would be unethical and illegal. Lee may not be a party to such action.
c. The alternative ethical courses of action that are oopen to Lee is basically has two ethical courses of action to consider. First, she may decide that she does not wish to associate herself with the company. Therefore, she simply may decline the job. If she chooses this course, she should treat Simon’s disclosures during this interview