Ethical Decision Making: A Mini-CaseYou are one of three stockholders who own and operate Mary’s Maid Service. The company has been operating for seven years. One of the other stockholders has always prepared the company’s annual financial statements. Recently, you proposed that the statements be audited each year because it would benefit the stockholders. The stockholder who prepares the statements proposed that his uncle, who has a lot of financial experience, can do the job at little cost. The other stockholder remained silent.Required:1. What position would you take on the proposal? Justify your response in writing.2. What would you recommend? Give the basis for your recommendation.

Analyzing the above case, the ideal would be to refuse the proposal that the uncle of a shareholder could be the auditor of the financial statements, as this could mean an unethical problem with the results of the statements for the benefit of a shareholder.

To maintain ethical and fair business for the three shareholders equally, the best solution would be to hire an external auditor, who would perform this function impartially so that the audit would issue an ethical and effective opinion on the company's financial situation in a legal manner .