Title: Ethics Assessment Answer Key
Course: SkillsCom BA 213 15.0 > Section: Credit Unit 3 Module 2

Case #2

Ethical Issue 25-1

Requirement 1

Factor #1

Tan needs to carefully evaluate the quality of Stock’s work versus that of the payroll processing service. Will the payroll processing service provide timely service and be responsive to Duck Associates’ needs, or will Tan simply inherit a new set of problems?

Factor #2

Tan should consider the overall value to the company of retaining Stock. If Stock performs well, knows the business well, and has potential to work in other areas, and at higher levels of responsibility, then it may be better for the company to cross–train him for other work, rather than bringing in new people who would have to learn the business and be trained from the ground up.

Factor #3

The auditor’s suggestion may be inappropriate regarding the outsourcing of payroll processing.  The auditors are not a part of management and thus Tan must evaluate the worthiness of the recommendation.  Tan must make any recommendation to upper-management regarding outsourcing company functions.