Super Security Co. offers a range of security services for athletes and entertainers. Each type of service is considered within a separate department. Marc Pincus, the overall manager, is compensated partly on the basis of departmental performance by staying within the quarterly cost budget. He often revises operations to make sure departments stay within budget. Says Pincus, “I will not go over budget even if it means slightly compromising the level and quality of service. These are minor compromises that don’t significantly affect my clients, at least in the short term.” Required 1. Is there an ethical concern in this situation? If so, which parties are affected? Explain. 2. Can Pincus take action to eliminate or reduce any ethical concerns? Explain. 3. What is Super Security’s ethical responsibility in offering professional services?

Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter3: Internal Control Over Financial Reporting: Responsibilities Of Management And The External Auditor
Section: Chapter Questions
Problem 17RQSC
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Super Security Co. offers a range of security services for athletes and entertainers. Each type
of service is considered within a separate department. Marc Pincus, the overall manager, is compensated
partly on the basis of departmental performance by staying within the quarterly cost budget. He often
revises operations to make sure departments stay within budget. Says Pincus, “I will not go over budget
even if it means slightly compromising the level and quality of service. These are minor compromises that
don’t significantly affect my clients, at least in the short term.”
Required
1. Is there an ethical concern in this situation? If so, which parties are affected? Explain.
2. Can Pincus take action to eliminate or reduce any ethical concerns? Explain.
3. What is Super Security’s ethical responsibility in offering professional services?

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