Business Finance Homework Help

I’m working on a accounting discussion question and need an explanation to help me learn.

Unit 1 Discussion Thread

As an accounting professional or manager, you may be in situations where ethical dilemmas arise. In theory, you may “know” the right action to take, but in practice (where there are company norms that contradict your ethical standards, for example), it may be difficult to act on what you feel is “right.”

Let’s say that a client asks you to misrepresent something in the client’s favor on a set of financial statements or a tax return. Your boss wants to do what the client asks. You could ignore GAAP or tax law and do what the client and boss want. Or you could opt for a different plan of action.
Answer the following:

• a. What are the factors you would consider in deciding what to do? (Use this format to answer: “The following factors would influence my decision:” [then list in bullet points])
• b. What would you do? (one sentence)
• c. What system of moral philosophy would you apply in this decision? (I would be applying _______)
• d. LIST any “downsides” to you in making that decision. (“The downsides to me might include:” [list in bullet points]
• e. LIST any “positives” to you in making that decision. (“The positives to me might include:” [list in bullet points])
• THESE ARE SAMPLE FOR YOU TO KNOW HOW YOU SHOULD DO IT:
• The following factors would influence my decision:
  1. My faith and conscience would not allow me to break an ethical or moral law by misrepresenting information.
  2. The rights of the investors and creditors to accurate and complete financial information. I ought to respect others’ rights as I wish them to respect mine.
  3. Each human’s worth and dignity must be respected. This dignity makes it wrong for others to abuse us or to use us against our will. As a human, I am an end and not a means for others’ unethical personal gains.
  4. Act only according to that maxim by which you can at the same time will that it should become universal law. I believe that truth-telling should become a universal law, and lying (conveying false or incomplete information) should not.
• I would not misrepresent something in the client’s favor on a set of financial statements or a tax return, especially if it contradicts GAAP or tax law.
• I would be applying the modern moral philosophy of Deontology: Rights Theory.
• The downsides to me might include:
  1. Lost client
  2. Angry boss
  3. Excluded from the “team”
  4. Looks of disapproval from fellow employees
  5. Decreased possibility of promotion
  6. Possibly lost job
• The positives to me might include:
  1. Maintained integrity and honesty
  2. Gained self-respect
  3. Fruits of the Spirit: love, peace, goodness, faithfulness, and most importantly in this case, self-control
  4. A possible mark of faithfulness on the hearts of those involved