Ethical Obligations and Decision Making in Accounting, 4/e 1
Case 1-5 Reneging on a Promise
Part A
Billy Tushoes recently received an offer to join the accounting firm of Tick and Check LLP.
Billy would prefer to work for Foot and Balance LLP but has not received an offer from the firm
Question
1. Should Billy call his friend? Provide reasons why you think he should or should not.
Is there any other action you suggest Billy take prior to deciding on the offer of Tick
and Check? Why do you recommend that action?
Billy could be placing his friend in an awkward situation. The friend may not be part of
the final hiring process of the firm and could jeopardize his own career by asking about
the hiring situation with Billy. Billy may also be encouraging his friend to make promises
Part B
Assume that Billy calls his friend at Foot and Balance and she explains the delay is due to the
recent merger of Vouch and Trace LLP with Foot and Balance. She tells Billy that the offer
should be forthcoming. However, Billy gets nervous about the situation and decides to accept the
offer of Tick and Check. A week later, he receives a phone call from the partner at Foot and
Case Overview
This case speaks to a dilemma that many students face. Often they do not realize that this is an
ethical dilemma. This is good example to use to discuss the consequences of their actions. Many
students will identity with being the one who lost out on an offer due to the star student sitting on
many offers from the different firms. This may also be an issue to discuss for the department to
discuss with the career placement center: should accounting firms and candidates have a uniform
Ethical Obligations and Decision Making in Accounting, 4/e 2
signing day? Firms may be dishonestly pressuring earlier and earlier decisions and recruiting
before students could know their preferences.
Firms have the right to recruit and offer jobs to the best candidates possible. Candidates have the
right to accept the job offer they like best. Candidates need a definite job to take when schooling
is complete and are scared that he will end up with neither job. Candidates have the right to
know honestly from firms if they are a serious contender for the job. The candidate could make
easier decisions if he knew that the offer was being delayed due to him being considered a
“second choice” for the firm versus the firm is moving slowly. Both the firm and candidate have
a right to expect that promises and contracts made will be kept. The candidate needs to
understand that an offer is a promise but is not a contract; it becomes a contract when accepted
by the candidate.
Questions
1. Identify the stakeholders in this case. Evaluate the alternative courses of action for
Billy using ethical reasoning. What should Billy do? Why?
The stakeholders include other students waiting for offers, Tick and Check LLP and Foot
and Balance LLP; both firms want honest, trustworthy and diligent employees. Billy
Ethical Obligations and Decision Making in Accounting, 4/e 3
2. Do you think it is ever right to back out of a promise that you gave to someone else?
If so, under what circumstances? If not, why not?
Most people at one time or another will break a promise. When a promise is broken, one
should accept responsibility for breaking the promise, should apologize, be sincere and
offer to make amends. A general rule when a person does something wrong (i.e., Lance