Application of Classical Ethical Theories

You are an internal auditor of a small rural bank with 3 branches. The bank’s customers are mainly farmers. The bank is a publicly traded corporation (OTC) and qualifies under the Sarbanes-Oxley Act of 2002 (SOX) regarding financial reporting requirements since the bank has over 500 shareholders and over $10 million in assets. Section 806 of SOX specifically requires that the CEO and CFO personally certify as to the accuracy of the financial statements. The CEO has asked you to make specific journal entries that appear to be improper and definitely unusual in nature. You have some reservations about the CEO’s request for these journal entries. You have been recently hired by this bank. You are the parent of newborn twins and recently purchased a new house. Additionally, this bank is the largest employer in the county with approximately 150 employees. (Ignore the separation of duties issue).
Organize your paper according to the IRAC method as follows:

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Issue: State the Ethical Issue
Rule: Briefly identify and explain the four classical theories (see assignment 4-2 and reflect on findings)
Analysis: Apply the facts of the case study scenario to each of the four classical theories separately and provide an in-depth analysis based on the issue.
Conclusion: Conclude by providing a course of action to address this issue that potentially would result in keeping your job and doing the right thing.

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