Ethical Dilema- accounting information


Content- identification of ethical issues.





Name, Class, Title

Identification of Ethical Issue(s):
Analyze from:
a. a strictly legal standpoint
b. a moral and ethical viewpoint
c. what is best for the company in the long run
Decision on how to respond to each situation:

Spelling, Grammar, Readability

Assignments must include a cover sheet with your name, class, and title of the assignment. ETHICAL DILEMMA

Below are several situations that present ethical questions in a business.

Analyze the situation:
(a) from the strictly legal viewpoint
(b) from a moral and ethical viewpoint (personal and organizational), and
(c) from the point of view of what is best in the long run for the company.

Think of yourself as an executive/manager of the company and be sure to consider both short and longrange consequences. Also look at each situation from the perspective of all stakeholders (groups concerned: customers, stockholders, employees, government, and community).


You are an accounting manager in a large firm. Your boss tells you to use a controversial accounting practice which will make the company’s profits seem higher. She tells you it is only to impress stockholders and will not be used in statements submitted to the IRS.

What do you do and why?


The case of managers requiring accountants to inflate the performance of a company is not new in the industry. The industry is awash with the case of scandals like Enron, Worldcom, and others where the management fraudulently increased the value of the company’s performance in order to attract investors. Finally, these companies came down tumbling and spiraled into financial scandal and loss of billions of investment.  Therefore, these cases offer a solid foundation that can be used by any accountant to solve the ethical dilemma presented in this case. As an accountant who understands that there is a code of ethics that has to be adhered to, I would not agree with the boss to engage in accounting practice that will make the company’s profit seem higher because in the short and long run, the practice would have far reaching implications for all the stakeholders.