The Accounting Firm of Gray & Co

question 9

Multiple Choice

The accounting firm of Gray & Co.did accounting work for both Regional Bank and Carter Electronics.Without Carter's knowledge or approval,Gray & Co.discussed Carter's financial problems with Regional Bank.In this situation,Gray & Co.

• A)breached a legal obligation to keep all client information confidential.
• B)breached a moral,but not a legal,obligation of confidentiality.
• C)did not breach any obligations to its clients.
• D)acted properly because it was protecting its client,Regional Bank,from possibly making an unwise loan to Carter Electronics.

---

Definitions:

Define Power

The ability or capacity to influence or control the behavior of others, either directly or indirectly, often through the possession of authority, knowledge, or means.

Milgram Authority Experiment

A psychological experiment conducted by Stanley Milgram, which measured the willingness of participants to obey an authority figure who instructed them to perform acts conflicting with their personal conscience.

Human Behavior

The range of actions and mannerisms exhibited by humans in conjunction with their environment, influenced by culture, attitudes, emotions, values, ethics, and genetics.

Inevitable

Something that cannot be avoided or is certain to happen.