The ethical dilemma in this case is the one that Daniel Potter finds himself facing. Daniel is an accountant at a Big Eight accounting firm, Baker Greenleaf. He was tasked with performing an audit on a wholly owned real estate subsidiary (Sub) of a large, long-standing client of his firm. Oliver Freeman is Daniel's project manager. Oliver is the one who gave Daniel the task to perform the audit and expects a clean opinion from Daniel on the Sub's analysis to protect the client's account exclusively. While performing the audit, Daniel found a discrepancy with the value of the Sub's largest real estate holdings. The Sub had valued the property at $2 million on its balance sheet and Daniel had estimated the value of that property to be much lower. Because the property was a dilapidated building in a bad location and had been vacant for several years, Daniel estimated the value to be $1.9 million less than what the sub had appraised it at. Daniel talked to the managers of the submarine about the possibility of writing down the value of the property based on what he had estimated, and they refused. Daniel decided to present his analysis with the designation “subject to opinion” because he and the client had a difference of opinion. Oliver wanted to see a “positive opinion” in the audit case, but Daniel refused to change it because this violated accounting rules. Since Daniel didn't want to change his analysis, Oliver took it upon himself to take the analysis out and turn it into a clean opinion. Oliver also gave a negative assessment of Daniel's performance of the audit. Daniel has to decide what to do about the situation because his name is on the files that Oliver edited and see…half of the sheet of paper…sheet. Daniel Potter was faced with the decision to report his project manager for falsifying information on an audit for a client. His project manager, Oliver Freeman, edited the analysis Daniel presented to get a clear opinion so their company could get an exclusive account. My decision was to report the incident so that the correct information was provided in the audit documents. The decision I have chosen may cost Baker Greenleaf the loss of a major client and Oliver Freeman his job, but it will maintain the integrity of the accounting profession and keep Daniel Potter safe from liability for providing false information. References Chapter 5, Approaches to Ethical Decision Making. (pp. 326-382). Business and professional ethics for directors, managers and accountants, 4e. ThomsonSouthwestern 2007.