So, why hide the truth? Two ethical dilemmas in which the auditor may fail to report correctly and the respective consequences and reasons are as follows (George E. Nogler 2008 ):• Scenario 1: Not declaring going concern uncertainty for an entity that shows signs of future collapse in financial reporting - One of the motivations for this scenario is the company's fear of being sued by its creditors; since uncertainty about business continuity directly implies the inability to promptly repay debts to creditors. The ethical violation hides the inability to avoid legitimate legal action by creditors. - Since one of the basic duties of an accountant is to report the financial situation of a company whether it was doing well or not; Refraining from producing a report that exposes the company in a negative light is considered a failure to fulfill an accountant's job responsibilities which is ethically incorrect. • Scenario 2: Declare going concern uncertainty for a company with healthy financial reporting. - An auditor is to be able to issue a going concern opinion in order to protect himself and strengthen his defensive position in the event that the client company goes bankrupt in the future and files a lawsuit against the auditor. The ethical issue here is that the reviewing party neglects the client's image in favor of their own possible legal protection. – Declaring going concern uncertainty for a company with healthy financial reports may result in the audit firm losing this company as a client, but is justifiable by the explanation of the above point. Both of the above scenarios would lead to the audit firm losing its credibility as a third party in the eyes of stakeholders due to lack of fairness and honesty...... middle of paper.... ..in a key method for maintain a The culture of ethics in accounting and financial decision making within the organization is to keep all accounting staff, audit staff, financial managers and financial controllers aware of and vigilant at all times towards ethical issues relating to the financial information they have access to manage and produce. This is achieved through the establishment of organizational codes of ethics and the creation of an overall environment of honesty and integrity demonstrated by top management who lead their companies by example of strong ethical standards and good citizenship.Shaub, M, Collins, F , Holzmann, O, & Lowensohn, S (2005) recommend hiring and promoting individuals with a high sense of ethics who match the company's standards of ethical conduct. Additionally, they recommend rewarding employees who demonstrate high ethics and punishing those who don't.