Ethics

Situation:
The conjunction purchased farm equipment that bequeath be concentrated to dish out, and much of the inventory is overvalued with low turnover. The company is struggling to sell the inventory at a profit. The company president will not write-down the unmovable inventory and is asking his rude(a) controller to hide the bother from the auditors.

Stakeholders:
The primary stakeholders are penny, Art, Ron, and Rhoda. Penny and Art are too the key stakeholders. Penny is the ascendance and is in charge of the inventory valuation. She, as controller, is directly accountable for the accuracy of the be recording, and faces criminal prosecution if she does not go with the U.S. chronicle guidelines. She is faced with the whistle blower dilemma. Art is the company president and is directly modify by any accounting decisions. His compensation is closely tied with the surgical process of the company. If the value of the soaked is suddenly lowered, he could lose his job, possible bonuses, and a privation in value of stock options and company shares. He also faces possible criminal prosecution, especially post Sarbanes Oxley. Ron is the Inventory reign Clerk, who is under Penny, and thus is limited in his liability of the accounting recording. He has been in charge of all the accounting at the firm.



Rhonda is the Sales Manager in charge of the gross gross revenue staff. The sales staff has been struggling because of economic problems. She is worried about her sales staff, but she too is likely compensated based upon the performance of her staff.

Stockholders, debt holders, employees, customers, and auditors are the secondary stakeholders who are indirectly affected by the accounting decision. Employees could lose their jobs. Customers could lose their services and equipment that their farms depend on to run. Stockholders shares would lose significant value. Debt would be downgraded. Auditors could adversely be affected if their audits are not accurate due to hiding of the problem and...If you want to get a full essay, order it on our website: Orderessay



If you want to get a full essay, wisit our page: write my essay .