Ethical Dilemma To Falsify The Year-End Ledger

The ethical issue that was presented in the scenario is that the manager, Mike, wants me to falsify the year-end ledger so that it looks as if he has had more revenue in the current year. There is a policy that starts in January so the money for that policy cannot be counted for revenue for the current year. Not only will it affect the current year books but it will affects next year’s revenue as well. The reason that he is asking for the change so that he can receive his bonus because he is hurting for money for his personal life. According to the book Fundamental Accounting Principles there is a three step process as to which I should use when facing this issue. The first is identify ethical concerns, use personal ethics to recognize an …show more content…
The first will be myself. Either choice I make I am looking at putting my job at risk. I would rather put my job at risk for doing the right thing than rather for doing the wrong thing. If I do the right thing my professional relationship with Mike can be altered and cause a less than desirable work environment for me. If I chose to falsify the statement than I am looking at more lies to cover up my choice and eventually losing my job. If I lose a job for such reasons I may not find another good job because of my history. The second Person at risk is Mike. He is the manager and therefore is responsible for his employees. The fact that he is asking me to do something unethical puts his job at risk as well. If his superior’s catch wind of what I was asked to do, they more than likely would let him go. The only person that I see this scenario benefiting is Mike. If I falsify the ledgers and make it look like there is more money there he then receives the bonus and is able to pay on some bills. The third stake holder that is at risk is the company itself. The altered revenue will affect the next year’s revenue account all make it look as if there is not as much money there as there should be. The people involved can potentially try to cover up the bad choice causing a trickle affect within the company. This can case irreversible damages to the company. As the accountant in this situation I am being taken advantage of. The fact that I control the financial statement is being taken advantage more specifically. I do not think that I could sue Mike for his request but what I could do is file a complaint against