Ethics

Situation: The conjunction purchased farm equipment that bequeath be punishing to dish out, and much of the inventory is over pass judgmentd with low turnover. The bon ton is essay to sell the inventory at a profit. The company chairman will not write-down the unmovable inventory and is postulation 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 potency and is in charge of the inventory valuation. She, as controller, is directly responsible 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 chronicle system decisions. His compensation is c drift offly tied with the surgical process of the company. If the value of the soaked is suddenly low ered, 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 stock-take reign Clerk, who is under Penny, and thus is limited in his financial obligation 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 consummate(a) gross revenue staff. The sales staff has been struggling because of economic problems. She is worried about her sales staff, but she too is presumable compensated based upon the pe rformance of her staff. Stockholders, de! bt 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 blameless due to hiding of the problem and...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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