Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby

Exercise 23

Ethical Decision Making: A Mini-Case
You 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.