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16. Dalbeck, a CPA, serves on the Alumni Admissions Committee of his alma mater.

ID: 360644 • Letter: 1

Question

16. Dalbeck, a CPA, serves on the Alumni Admissions Committee of his alma mater. As part of his duties, he interviews and evaluates applicants for this prestigious college and ranks them on a scale of 1 to 10. If he gives an applicant a high ranking, the Alumni Admissions Committee reviews the applicant’s credentials and makes the final recommendation concerning admission. If he gives an applicant a low ranking, their admission is automatically denied. In accepting this volunteer position, Dalbeck agreed to be impartial.

a. Allison, the high school valedictorian in Dalbeck’s community now is applying for admission to this college. Allison is a close friend of Dalbeck’s daughter Emily. Does Dalbeck have a conflict of interest? Explain?

b. Does Dalbeck have a conflict of interest if valedictorian Allison attends the same church that Dalbeck attends? Explain?

c. Does Dalbeck have a conflict of interest if Allison is a member of an underrepresented ethnic group and Dalbeck feels strongly that the college needs to admit more members of this ethnic group? Explain?

d. In which of these cases, if any, does Dalbeck, have a duty under the Code of Conduct to make appropriate disclosures to the university? Explain?

e. Assume instead that Dalbeck was providing bookkeeping services to the Alumni Organization on a pro bono basis. Would the scope of Dalbeck’s disclosure duties be affected by the fact that he was donating his services as an unpaid volunteer?Explain?

Explanation / Answer

a. Allison, the high school valedictorian in Dalbeck’s community now is applying for admission to this college. Allison is a close friend of Dalbeck’s daughter Emily. Does Dalbeck have a conflict of interest? Explain?

Yes, the conflict of interest comes when one is already aware of a person, and has a high chance of not exercising the usual practice, as Allison is a close friend of his daughter, chances are he will not be objective in his evaluation and he might have more information about her than is specified in the application, hence is not ideal for others who have applied. So, he should let another person judge Allison's candidature.

b. Does Dalbeck have a conflict of interest if valedictorian Allison attends the same church that Dalbeck attends? Explain?

No, as in a church the level of interaction is not as high as when a person knows the student due to personal liason. In case of same church the chances of knowing her personally is limited. Hence the advantage of more information available to him as compared to other candidates does not stand. So, he can still be objective. As being involved in the same church has got no relation to admission and education.

Though there is still some chance of favor but it is very less likely, as the level of interaction is very limited.

c. Does Dalbeck have a conflict of interest if Allison is a member of an underrepresented ethnic group and Dalbeck feels strongly that the college needs to admit more members of this ethnic group? Explain?

No, here this is a personal bias but this is not a conflict of interest, as he is not involved in the same activity group. He has a bias and this is not conflict of interest in official way, but in real sense it is.

d. In which of these cases, if any, does Dalbeck, have a duty under the Code of Conduct to make appropriate disclosures to the university? Explain?

In A and B, Dalbeck should disclose the information to the university, as one is personal and other is related to the involvement in the same activity group.

In other case there is nothing to disclose as its a belief and he should act in a proper way.

e. Assume instead that Dalbeck was providing bookkeeping services to the Alumni Organization on a pro bono basis. Would the scope of Dalbeck’s disclosure duties be affected by the fact that he was donating his services as an unpaid volunteer?Explain?

No, here the activities do not hamper the final outcome, and as the decision making power is not affected if he is providing bookkeeping service. Hence, the disclosures are optional.

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