Accounting

Chapter 8 Ethics Case

BYP 8-6

a. Who will suffer negative effects if you do not comply with Gena Schmitt’s instructions? Who will suffer if you do comply?

As a assistant controller I may suffer some negative consequences from Gena Schmitt, who is the financial vice-president. I is a possible that the insurance company will react the way Gena Schmitt say, but is also possible that they will not react the way Gena said they would.

If I do what is suggested and falsify the cash balance for June by holding the cash receipt book open another day that will show that I do not have integrity and that I am not an honest person. If someone found out what I did, I would have to face legal consequences for falsifying a report. Also we have to remember that if I do this the insurance who trusted me to do the right thing is mislead.

b. If I hold the cash receipts book open to and post incorrect cash balance I will be committing fraud, it is very unethical and I will be deceiving my clients.

c. 1) I can following orders from Gena Schmitt and lie about the cash balance which will be wrong. 2) I as a employee can tell Gena Schmitt not to hold the books open for another month, and then do a correct report , have Gena Schmitt and another manager or their boss explain my finding to the insurance company. I think that as a controller I would have to be honest and tell the true no matter the fallout.te

d. Mr. Cowgill, the total 285's approved and signed by you today was $118,490.00.