Jane is an audit accountant at xxx Audit Services, Inc, a public accounting firm
ID: 2458809 • Letter: J
Question
Jane is an audit accountant at xxx Audit Services, Inc, a public accounting firm currently doing an audit of Englewood Enterprises, a public company in New York. Towards the end of the audit engagement, Joe, who is a finance manager at Englewood Enterprises, approaches Jane and asks her for her personal email address. Since Englewood Enterprises is an important client of xxx Audit Services, Jane does not want to damage the relationship, but at the same time, she does not want to give her personal email address because that might affect the independence of the audit. Use Kohlberg’s moral development theory to discuss she Jane would do in each of the six stages.
Explanation / Answer
Answer
Lawrence Kohlberg's stage of moral development was an enhancement to psychological theory developed by psychologist Jean Piaget. Kohlberg refined the theory developed by Piaget and defined six stages of moral reasoning. The theory holds that moral reasoning which is the base for ethical behavior has six stages of moral development. Kohlberg determined that the process of moral development was principally concerned with justice, and that it continued throughout the individual's lifetime, Typically six stages of Kohlberg can be summarized in three levels which is discussed below in detail.
In the present case Jane was approached for her personal email address by Joe who is finance manager at Englewood Enterprises whereas Jane is an audit accountant at xxx Audit Services, Inc , a public accounting firm currently doing an audit of Englewood Enterprises. So Jane may not want to give her personal email address based on the morality that she is an auditor and sharing personal email address may break her independence during audit assessment.
Let us discuss each six stages of theory and then applicability of each six stages of Kohlberg’s theory of morality in the case of Jane:
Level 1 - Pre-conventional morality
Kohlberg theory holds that at the pre-conventional level where most of child at age of nine or slight above, we don’t have a personal code of morality. In this stage moral code is developed by the standard behavior of adults and the consequences of following or breaking their rules.Authority is outside the individual and reasoning is based on the physical consequences of actions.
• Stage 1. Obedience and Punishment Orientation. The individual behaves good so as to avoid punishment.
Taking the case of Jane, according to this stage of theory Jane may not share her email address to Joe considering the punishment she may get from legal compliances of sharing personal email addresses. She will take into account all relevant laws before sharing. The fear of legal consequences will prohibit her from sharing her email address.
• Stage 2. Individualism and Exchange. At this stage individual recognize that there is not just one right view that is handed down by the authorities. Different individuals have different viewpoints.
Considering the case of Jane, she may share her email address at this stage of theory considering that she may have different view point from others. She may think that sharing may not necessarily affect independence of audit.
Level 2 - Conventional morality
At the conventional level (most adolescents and adults), we begin to internalize the moral standards of valued adult role models.
Authority is internalized but not questioned and reasoning is based on the norms of the group to which the person belongs.
• Stage 3. Good Interpersonal Relationships. The individual is good in order to be seen as being a good person by others. Therefore, answers relate to the approval of others.
Relating this stage of morality in the case of Jane, she may not refuse to Joe to share email address, Since Englewood Enterprises is an important client of xxx Audit Service and Jane may not want to damage the relationship with client and she will share the email address.
• Stage 4. Maintaining the Social Order. The individual becomes aware of the wider rules of society so judgments concern obeying the rules in order to uphold the law and to avoid guilt.
Applying stage 4 in present case of Jane, she may refuse to share email address on the point that auditing firms need to abide by regulations formulated for ethical behavior by the Institute controlling auditing and accounting. So at this stage of theory she may not share the email address on the ground of maintaining laws and regulations.
Level 3 - Post-conventional morality
Individual judgment is based on self-chosen principles, and moral reasoning is based on individual rights and justice. According to Kohlberg this level of moral reasoning is as far as most people get. According to these level only few around 10-15% are capable of the kind of thinking necessary for stage 5 or 6 (post-conventional morality). That is to say most people take their moral views from those around them and only a minority think through ethical principles for themselves.
• Stage 5. Social Contract and Individual Rights. The individual becomes aware that while rules/laws might exist for the good of the greatest number, there are times when they will work against the interest of particular individuals.
Considering stage 5 in the case of Jane, she may think that there may or may not exist the rules for not sharing the email address but it is her personal opinion that she must not share email address because that might affect the independence of the audit. So she will not share email address.
• Stage 6. Universal Principles. Stage six states that People have developed their own set of moral guidelines which may or may not fit the law. The person will act to defend these principles even if it means going against the rest of society in the process and having to pay the consequences of disapproval and or imprisonment. Kohlberg doubted few people reached this stage.
Applying stage 6 in the case of Jane, she will tend to break the rules and she will share the email address to Joe. She will set her own rule even if regulation prohibits the sharing of email address.
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