1 what are the ethical issues in this case 2 who and what


The return in front of Helen was completed on behalf of her newest client, Billy Joe Carter, who owns Honest Bill's Used Car Lot. He is a cousin of half of the members of the town council and is very influential in the local business community. Establishing a client relationship with Billy is the break that Helen has been looking for. In fact, Billy has made it clear that if Helen can complete and file his return before the April 15 deadline, Helen will receive his tax return business, as well as that of his family, for year to come. Of concern to Helen, however, are several items on Billy's return. Billy insists that he is entitled to a business deduction for his new four-wheel drive truck, since he uses it 100% of the time for business errands (such as traveling to car auctions, picking up parts, etc.). Helen thinks she has seen Billy driving the truck a number of times on what appeared to be personal trips. Also, Billy insists that the expenses associated with several trips to Las Vegas are deductible since the trips were "primarily of a business nature." Billy also claims several other large deductions without offering what Helen would consider to be "substantial documentation." As if anticipating Helen's skepticism, Billy said, "I don't know how things were in the big city where you came from, but around here people believe that a person's word is worth something. You'll just have to trust good old 'Honest Bill' this year, and next year I'll try to keep some better records."

1. What are the ethical issues in this case?

2. Who and what are the stakeholders who will be affected directly or indirectly by inappropriate decision on Helen's part ?

3. What are Helen's options in this situations?

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Accounting Basics: 1 what are the ethical issues in this case 2 who and what
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