Ethical Business Challenges Identify the ethical and legal issues of which Gerard needs to be aware.

Gerard definitely needs to be aware of the potential conflicts of interest that he is currently dealing with. There are many rules and regulations that protect the firm's clients from any kind of disclosure of their internal state of affairs. Obviously some of the information will be disclosed as public information once the accounting documents are released to the public, but even giving out public information before the official release is considered a crime. Even if Gerard would avoid criminal charges, the fact that he is disclosing information could be bad for the firm because it will lose its integrity amongst its clientele.

However, he should do so by maintaining his integrity and the integrity of the firm. He could use his insider information to invest and probably make money but this would be a bad decision.
Discuss the issues of accounting firms going into the financial services market.

Accounting firms that enter the financial services market must be very careful about how they structure their business and how they operate. It is generally better to either specialize in one or the other even though the profits can…