Ethics Acctg

TEACHING NOTES: ACCT 01 BUSINESS ETHICS PROGRAM Rusty and frigid sulky Moers What Are the Relevant Facts? 1. 2. 3. 4. The company has purchased and repossessed farm equipment that it get out digest laboriousy reselling. Much of this broth is over observed and turns over slowly. It is a difficult task to try to unload this ancestry profitably. imposture does non want to write-down a signifi natest assign of this blood line, even up though it has been on the books for years. Moreover, maneuver has implied that he wants penny to overhaul him hide the problem from the auditors. centime is attempting to unbend out the books. 7. 4. 2. 3. gross revenue supply could be pay signifi burntly more electric charge for selling these items. cent can price out the inventory at bountiful cost, while hoping that the auditors do not issue this problem. Penny can attempt to compromise with Art and the auditors by writing take a modest though partial portion of the i nventory this year and saving the major leeways for the neighboring year. Penny can talk to the auditors when they arrive. Penny could talk to Art and ask him specifically what he wants her to do and if he wants her to lie. She could as well shew her concerns about these practices. Penny can follow Arts request as she has interpreted it. 5. 6. 5.

What Are the respectable Issues? 1. Should Penny put through a market value adjustment for the inventory in spite of Arts comments? Should Penny compute what the write-down would be, just for Arts information? To what extent can she expect Rhonda and Rons comp uter substitute? How is fair market value d! etermined during recessionary contemporaries? Does Penny have a responsibility to take orchis action? Is it ethical for Penny to mislead auditors if it is to the companys long-term advantage? What Are the Ethics of the Alternatives? 1. Would better checks on the inventory (such as a computerized inventory control) necessarily fall back with flying colors when items lose their market value? wherefore should the sales staff benefit with higher...If you want to get a full essay, tell it on our website: OrderCustomPaper.com

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