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Accounting III.Forum Question - Essay Example

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The case of misstated expense in the books of accounts of Mueller Imports has been an ethical dilemma for the newly recruited controller, Becky Knauer. As the case suggests, the ethical issues include that of the full disclosure principle and the matching principle as the…
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Accounting III.Forum Question
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Accounting III.Forum Question

Download file to see previous pages... Becky should ideally report the transactions to the higher authorities of the car manufacturing company so that they could initiate appropriate measures but such activity might lead to her termination of employment.
If Becky informs about the transactions that are taking place in between the dealer, Mueller Imports and the sales executives and the sales manager, it is certain that punitive measures would be taken against the dealer which might lead to termination of dealership. Also, it would certainly affect the brand name of the company as it would get revealed that the executives of the company are involved in unethical dealings.
It would be prudent to gather enough evidences by Becky against the dealer and then to lodge complaint to the higher officials of the car company. It is evident that such a complaint would bring out the unethical nexus in between the dealership and the sales team. Therefore, the controller should show enough guts to handle the issue ethically.
Kothari, S. P. & Ramanna, Karthik. What should GAAP look like? A survey and economic analysis. 21 January 2010. The University of Chicago Booth. No Date. ...Download file to see next pagesRead More
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