Accounting 430 Assignment 1
Ethical Dilemma Executive Summary
By: HARRY PAYE
Week 1 Assignment
This case is about Jackson Daniels a CPA who is faced with an ethical dilemma due to the discovery that the budget he prepared for management to extend a particular project was faulty and the projected values were overstated. Legally the implementation of the project on this faulty budget has the potential to expose management to possible lawsuit from creditors who believe that they were mislead, it also will cost management to finance a project that will not be profitable as expected and investors might loss confidence in management due to incompetence ruining the reputation of management. Thus, ethically it is the responsibility of Jackson Daniel to report his errors to management. It is the legal right of all party concern to know that the budget previously presented was faulty and needs to be changed to save everyone from investing in a project that will not be profitable.
Ethically as an employee who has made any error in his projection he has the responsibility to report the errors to management, this will save investors of the entity from investing in a project base on a faulty budget. He will also be saving management from any potential lawsuit from creditors. Ethically it is the duty of the employee to overlook his personal interest and consider the well being of the entity as a whole. Integrity should be major aspects of ethics that should influence any decision therefore, what ever the situation the employee should report the error to management. If I was the employee there will be no reason why I should not report my errors to management because legally and ethically my profession encourages honest, trustworthy, credibility and competence in executing my duties. Hence, it is expected of Daniel to act in accordance with the moral rule that requires honesty by telling the truth and disclosing all his projections to management.
As a CPA it is Daniel’s responsibility to adhere
By: HARRY PAYE
Week 1 Assignment
This case is about Jackson Daniels a CPA who is faced with an ethical dilemma due to the discovery that the budget he prepared for management to extend a particular project was faulty and the projected values were overstated. Legally the implementation of the project on this faulty budget has the potential to expose management to possible lawsuit from creditors who believe that they were mislead, it also will cost management to finance a project that will not be profitable as expected and investors might loss confidence in management due to incompetence ruining the reputation of management. Thus, ethically it is the responsibility of Jackson Daniel to report his errors to management. It is the legal right of all party concern to know that the budget previously presented was faulty and needs to be changed to save everyone from investing in a project that will not be profitable.
Ethically as an employee who has made any error in his projection he has the responsibility to report the errors to management, this will save investors of the entity from investing in a project base on a faulty budget. He will also be saving management from any potential lawsuit from creditors. Ethically it is the duty of the employee to overlook his personal interest and consider the well being of the entity as a whole. Integrity should be major aspects of ethics that should influence any decision therefore, what ever the situation the employee should report the error to management. If I was the employee there will be no reason why I should not report my errors to management because legally and ethically my profession encourages honest, trustworthy, credibility and competence in executing my duties. Hence, it is expected of Daniel to act in accordance with the moral rule that requires honesty by telling the truth and disclosing all his projections to management.
As a CPA it is Daniel’s responsibility to adhere