1. How should you handle this situation? This situation should be handled rationally, calmly and ethically. This can be accomplished by following the steps outlined in the book which include finding the benefits to the person who asked the favor and finding who it might prove detrimental to, in addition, one must find another way to go about the request and finally go with what you think your family and friends would want to see if it were on television. This way, you consider every aspect of the request and can come to a decision that is best for everyone even if it is in the long-term.
2. What are the ethical implications of Mike’s request? The ethical implications of Mike’s request revolve around legal and financial issues. According to Mike, this a “small thing in return” for the favors he has done for me, but I would beg to differ when it comes to accounting rules. Basically, Mike is asking you to report fraudulent and incorrect financials for the end of the year. There is a reason unearned revenue does not get put in with the revenue. It is because it is a liability, not a part of the net income.
3. Who are the parties who would be helped or harmed if you complied with the request? …show more content…
On the other hand, multiple parties including Mike and myself could possibly be harmed if I were to comply with the request. Reporting incorrect financials is not ethical and gives stakeholders the wrong idea of what the company is doing. If it were to be traced back to me, I could be fired as the accountant because I am the one who physically changed the financials. It could also be traced back to Mike, which would possibly endanger his job and his position in the
2. What are the ethical implications of Mike’s request? The ethical implications of Mike’s request revolve around legal and financial issues. According to Mike, this a “small thing in return” for the favors he has done for me, but I would beg to differ when it comes to accounting rules. Basically, Mike is asking you to report fraudulent and incorrect financials for the end of the year. There is a reason unearned revenue does not get put in with the revenue. It is because it is a liability, not a part of the net income.
3. Who are the parties who would be helped or harmed if you complied with the request? …show more content…
On the other hand, multiple parties including Mike and myself could possibly be harmed if I were to comply with the request. Reporting incorrect financials is not ethical and gives stakeholders the wrong idea of what the company is doing. If it were to be traced back to me, I could be fired as the accountant because I am the one who physically changed the financials. It could also be traced back to Mike, which would possibly endanger his job and his position in the