Final answer:
The question deals with the consequences of ethical issues in auditing and financial reporting, emphasizing the need for auditors to remain vigilant and address even minor ethical infractions immediately. Professional ethics and data reliability are integral in maintaining accurate and reliable financial information.
Step-by-step explanation:
The consequences referred to in the question are related to the ethical issues that may arise in the context of auditing and financial reporting. Whenever auditors become too familiar with their client firms, there is a risk that they will overlook small violations over time, potentially leading to the acceptance of questionable statements. This can compromise the integrity of the audit and the reliability of financial information. The remedy suggests maintaining vigilance and addressing even minor ethical infractions immediately to prevent a gradual decline in ethical standards.
In the provided mini-case study, the conflict arises between a project manager seeking to positively skew a report and an evaluator upholding the integrity of the evaluation process. This situation underscores the importance of professional ethics in ensuring the accuracy and reliability of data.
Overall, the ethical problem should be corrected by promoting an environment of professional ethics, enhancing data reliability, and enforcing codes of conduct that prevent the manipulation and misrepresentation of facts within research and reporting. Companies, evaluators, and auditors must hold themselves to high ethical standards and put procedures in place to prevent unethical practices.