No, when I say "client" I'm referring to the actual employees of the company that hires me. I consider the residents, my audience. The residents were likely unaware of the lipsyncing issue at all.
I'd say you need to cater to both, and can usually do so without any conflict of interest.
Playing devils advocate, it'll be a tough call for the one AD because this act is pretty well liked by the residents. However, they aren't used that much because there are other acts who are more favored by the residents...per a resident council as Gary mention...so they get some leftovers...
I really think a conversation will fix everything, unless the entertainer flat out lies about it. Just because the residents may really love what a performer does, doesn't give them license to take shortcuts or deceive the audience.
Given the mental state of so many of these residents, the AD is also charged with being their advocate, I think.
I wish I could somehow get about five or six of us nursing home guys and put together a national tour, lol... Go around the country and just blow the doors off of some of these places.
It won't happen, but wouldn't it be kinda fun?
Bill in Dayton