During the preparation of a bank reconciliation, the assistant controller discovered that the Bank incorrectly recorded a $3290 check as $329.  The controller has decided not to notify the bank but wait for the bank to detect the error.  The controller plans to record the $2961 error as "Other Income" if the Bank fails to detect the error within the next three months.  Please discuss whether the controller is behaving in an ethical manner.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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During the preparation of a bank reconciliation, the assistant controller discovered that the Bank incorrectly recorded a $3290 check as $329.  The controller has decided not to notify the bank but wait for the bank to detect the error.  The controller plans to record the $2961 error as "Other Income" if the Bank fails to detect the error within the next three months.  Please discuss whether the controller is behaving in an ethical manner. How are cash equivalents reported in the financial statements?  Please list two examples of cash equivalents. 

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