Accounting Paper-Ethics

519 Words3 Pages
Accounting Assignment 1 Ethics Case pg.99 Part A a) The stakeholders in this situation are as follows: • Vu Hung, assistant chief accountant. • Users of the company's financial statements (internal and external). Also known as Primary and Secondary. This includes a number of different people who hold different roles within and outside of the company. The internal users all share the common fact that they are within the Staples Company. These people include Management, Employees, and Owners. More specifically the accountants, Jr. Accountants, financial officers, and CPA. The external users are those who are not working within the company, but still hold strong financial ties with the company. External users most commonly include creditors, tax Authorities, investors, and customers. • Her supervisor (the chief accountant, who evaluates her). b) By adding $1,000 to the Equipment account within the trial balance, that account total is intentionally misstated. By not locating the error causing the imbalance, some other account(s) may also be misstated. Vu’s actions do not hold malicious or dangerous intent, but they still a strong incentive to manipulate financial reports in order to gain more money and status within her company. Vu is totally misleading potential investors and could be causing them to make a decision that they would not have made if everything were as it seemed. She should disclose what she has done. Otherwise, if Vu is violating a company accounting policy by her action. c) Vu's alternatives are as follows: • Miss the deadline but find the error causing the imbalance. • Tell her supervisor of the imbalance and suffer the consequences. • Leave what she has done as it stands and locate the error later, making the adjustment in the next quarter. Part B Accounting is labeled as the “language of business” for multiple
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