Jane finds a material misstatement while auditing a client's accounts receivables. Her senior tells her to ignore the misstatement so that the client does not get upset. Jane wants to be viewed as a team player in order to advance in the firm. So Jane follows her senior's instructions and ignores the misstatement. Which ethical theory did Jane use to make her decision?
A) Egoism
B) Justice
C) Virtue ethics
D) Utilitarianism

Question

Quizplus · Accepted Answer

Egoism is an ethical theory that suggests individuals should act based on what benefits them personally. In this scenario, Jane chose to ignore the misstatement to avoid upsetting the client and to be viewed as a team player, which could potentially benefit her career. This decision prioritizes her own interests over the ethical obligation to report material misstatements, which aligns with the principles of egoism.

Jane Finds a Material Misstatement While Auditing a Client's Accounts