Accounting Ethics & related Regular Issues
Professor: James Racic
September 7, 2014
1. I would report the error immediately to my supervisor or the person in charge of that department. I am currently an employee, and I am aware that my responsibility is limited on my performance. However, shareholders, investors, and supervisors trusted on me to do the best I can to make the company grow and be profitable. I would not change my answer, all humans make errors and it is better to safe than sorry. I‘d rather check the numbers twice on time and request a hand to my supervisors to avoid any effect on the company.
2. Daniels must support his decision based on his duties and rights. As well in this situation he shows what kind of character he has as professional and how it helps other parts involved in the company with his decision.
If Daniels do not report the stakeholders would be affect:
The company will have lower profits due on extra cost of production.
The shareholders and supervisor will be raising questions about the credibility of his future projections.
They won’t get their profit projected by Daniels. They won’t trust on him anymore
Some employees will be hired when the company would not need them. They could lose their jobs in no time.
3. According on CMA Standards of Ethical: Mitigate actual conflicts of interest, regularly communicate with business associates to avoid apparent conflicts of interest. Advise all parties of any potential conflicts. Communicate information fairly and objectively. Disclose all relevant information that could reasonably be expected to influence an intended user's understanding of the reports, analyses, or recommendations. Disclose delays or deficiencies in information, timeliness, processing, or internal controls in conformance with organization policy and/or applicable law.
According on AICPA