ACC308 Lecture Notes - Lecture 2: Cengage Learning, Justice Of The Peace
Document Summary
Reviewing the case study c10-7 ("ethics and construction. Costs") has presented a challenging situation for the accountant assigned to this company. The ceo"s intentions with reporting expenditures and profits are not exactly legal or ethically acceptable. Assuming i have a relatively long-standing relationship with my client as well as no background red-flags, i would approach the situation as follows: explain to the ceo that the following requests are not able to be performed: In the event there are legitimately planning, or engineering costs associated that date back to 2015, this makes sense. Assuming that there aren"t any legitimate costs associated, this goes against gaap standards as well as will double-dose, which is not only illegal, but unethical. This could cause issues with my firm"s standings and reputation should it get out that this is something i allowed. Creating illegitimate overhead for the project would be illegal and unethical as well.