So why hide the truth? Two ethical dilemmas in which the auditor may fail to report correctly and their respective consequences and motivations are as follows (George E. Nogler 2008): • Scenario 1: Not reporting going concern uncertainty for an entity that presents signs of future collapse in its financial reports. One of the motivations for this scenario is the company's fear of being sued by its creditors; since the uncertainty regarding going concern directly implies the impossibility of repaying debts to creditors in a timely manner. The ethical violation hides the inability to avoid legitimate legal action by creditors. - Since one of the fundamental duties of an accountant is to report on the financial situation of a company, whether it is doing well or not; refraining from producing a report exposing the company in a negative light is considered a breach of an accountant's professional responsibilities, which is ethically unhealthy. • Scenario 2: Declaring uncertainty about the going concern of a company that presents healthy financial reports. likely to issue a going concern opinion in order to protect itself and strengthen its defensive position in the event of future bankruptcy of the client company and to initiate legal action against the auditor. The ethical problem here is that the auditor neglects the client's image in favor of his own possible legal protection. - Reporting going concern uncertainty for a company with sound financial reporting is likely to result in the audit firm losing that company as a client, but is justifiable by the explanation of the point mentioned above. The above two scenarios would lead to the audit firm losing credibility as a third party in the eyes of stakeholders due to failure to correct and sharpen...... middle of paper. .....a key method of maintaining a culture of ethics in accounting and financial decision making within the organization is to retain all accounting staff, audit staff, financial managers and financial controllers aware and attentive at all times to ethical issues related to finance. information they have access to for management and production. This is possible through the establishment of organizational codes of ethics and the creation of an overall environment of honesty and integrity displayed by senior management setting an example of strict ethical standards and good citizenship.Shaub, M , Collins, F, Holzmann, O, & Lowensohn, S (2005) recommend hiring and promoting people with a high sense of ethics and who match the company's standards of ethical conduct. Additionally, they recommend rewarding employees who demonstrate high ethics and punishing those who do not..