Case 1-8 Accounting Mistakes Paper
Ethics in Accounting Mistakes
Julia Brewer
Acct-530-61365
March 9, 2014
The following report will discuss Case 1-8 A Faulty budget included in chapter one of the text book Ethical Obligations and Decision Making in Accounting: Text and Cases, 2nd Edition. In this case, Jackson Daniels is an accountant for Lynchberg Manufacturing and had been employed there since graduating college a couple years back. Daniels was responsible for creating the sales budget for sales of machines manufactured by the company. He admittedly made a mistake in the budget which resulted in sales being budgeted 25% higher than the prior year. After the budget was finalized, actions were taken by other employees in the company to prepare for the increased sales projections which included hiring employees to accommodate for the anticipated increased demand. Daniels is faced with the decision of owning up to his mistake to protect the interest of the company or keeping this secret to protect his own …show more content…
In practicing good ethical behavior, one should have values that include trustworthiness, respect, responsibility, fairness, caring, and citizenship. These are the six pillars of character identified by the Josephone Istitute of Ethics. Being trustworthy includes being honest and acting with integrity. Omitting relevant information, such as keeping the mistake a secret, is the same as lying and therefore dishonest. If Daniels acts with integrity, he will do what is right even if it means the outcome for him is not good. He should respect his coworkers and be fair to them by admitting his mistake. It is possible there was no dishonesty in the mistake made in the budget, but Daniels has a responsibility to be accountable for his mistakes. He should empathize with the consequences the stakeholders involved will face due to his mistake which would be an attribute of
Julia Brewer
Acct-530-61365
March 9, 2014
The following report will discuss Case 1-8 A Faulty budget included in chapter one of the text book Ethical Obligations and Decision Making in Accounting: Text and Cases, 2nd Edition. In this case, Jackson Daniels is an accountant for Lynchberg Manufacturing and had been employed there since graduating college a couple years back. Daniels was responsible for creating the sales budget for sales of machines manufactured by the company. He admittedly made a mistake in the budget which resulted in sales being budgeted 25% higher than the prior year. After the budget was finalized, actions were taken by other employees in the company to prepare for the increased sales projections which included hiring employees to accommodate for the anticipated increased demand. Daniels is faced with the decision of owning up to his mistake to protect the interest of the company or keeping this secret to protect his own …show more content…
In practicing good ethical behavior, one should have values that include trustworthiness, respect, responsibility, fairness, caring, and citizenship. These are the six pillars of character identified by the Josephone Istitute of Ethics. Being trustworthy includes being honest and acting with integrity. Omitting relevant information, such as keeping the mistake a secret, is the same as lying and therefore dishonest. If Daniels acts with integrity, he will do what is right even if it means the outcome for him is not good. He should respect his coworkers and be fair to them by admitting his mistake. It is possible there was no dishonesty in the mistake made in the budget, but Daniels has a responsibility to be accountable for his mistakes. He should empathize with the consequences the stakeholders involved will face due to his mistake which would be an attribute of