Gordan should follow fundamental ethical principles and professionalism in his audit engagement. He should always maintain his professional skepticism and have the ability to make his own decisions regarding audit findings. He should keep matters confidential first, but then, if by chance he argues with someone, he should be objective enough not to be influenced by his superiors or anyone else and take the wrong path. It was wrong of him to discuss the material inaccuracy with Jane instead of informing his LPL client directly. Maintaining his integrity, he would have sincerely discussed the matter directly with LPL management so they could work on it to correct their profits, or he should have provided a qualified report stating the error and inflated profits due to the wide unfavorable labor variance that was recorded as an asset. Being objective, he should not be afraid to provide a negative report on the unfavorable variance which was miscalculated by the new system recommended only by GBB and would have decreased the profits already reported by LPL