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Case Study 1 8 Page 50
What should an employee do when he or she discovers that there is an error in a projection? Why do you suggest that action? Would your answer change if the error was not likely to affect other aspects of the operation such as employment? Why or why not?
In my opinion the sooner the employee reports an error the better, regardless the error. If Daniels in our case does not report the error immediately there are consequences such as; an increase in cost of goods sold, and cost of hiring new employees to meet the production required for sale. Numerous employees may be laid off because of the losses the company is about to encounter in the future. With no accurate sale projection obviously the company’s bottom line will be affected for worse. All employees, especially employees making sales projections which directly impact the company’s bottom line and future should act with integrity. No my answer would not change even if my job position was at risk. A person of integrity should act out of moral principle and not expediency. That person will do what is right even if it means the loss of a job or client. In accounting, the public interest (i.e., investors and creditors) always must be placed ahead of the one's own self-interest or the interests of others, including a supervisor or client according to the book. Speaking from my personal experience in my first year of work my tax manager tells me : Albana I need you to do a research based on this client and this tax performance for them. After submitting my research to the manager he looked at me disappointed and said: No this is not the right answer. I replied YES IT IS. Well the client does not like this answer he said to me. I said TOO BAD for them. I think that the greater the damage the greater the duty to let others know sooner than later. Certainly, it is more important to report errors when those errors can impact the company. The integrity of the person making the projection affects the overall reputation

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